Cloud Stocks Look Back At One Of The Worst Weeks Since January Of This Year
Cloud stocks have had an especially bad week, with prices for stocks dropping by 11%. This happens to be the biggest drop that the market has seen since January 2022. However, many analysts are currently fearing the worst, as they believe that stocks could drop to new lows not seen before since March 2020.
The stock market, in general, has been struggling as the forex and crypto markets turn more volatile with each passing day. But as more mainstream tech stocks see a relentless onslaught of price fluctuations, various nice stocks have been getting hit with the worst of it.
Changes in Leadership
One of the reasons why the stock price for various cloud stocks seems to be falling is because major c companies in the market see a change in leadership. Executives from both Zscaler and Five 9 suddenly left the company, and investors were quick to move away from much riskier stocks or assets.
Both of these factors combined led to the market witnessing a major loss. While some individual companies have taken a significant loss compared to others, the market as a whole seems to be going downhill too.
A collective of 75 stocks that all represent cloud software is called the Wisdom Tree Cloud Computing Fund. This stock option lost a total of 53% in less than a year, which is over twice what the S&P 500 managed to lose at the same time.
Highest Highs, Lowest Lows
The market really picked up steam in 2020 and proceeded to ride the wave throughout 2021 and into 2022. It was a massively successful investment opportunity that fueled a considerable amount of development in the industry.
However, as the war in Ukraine and rising crude oil prices all managed to mount pressure on the market, investors were less inclined to make riskier investments. Therefore, investors started to rotate out of the market.
Analysts are worried that the market still has a ways to go before it can make a proper recovery. While the market has just lost 11% in the past week, many believe that it will likely reach 2020 levels before the boom.
Companies Taking the Brunt of the Impact
A handful of companies have taken the brunt of the impact of the damage that the rise in prices has caused. Five9 took the most out of any other company since back-to-back events led to people having their confidence shaken about the company.
While still seen as a very competitive force in the industry, its recent issues have investors sitting on the fence about possibly investing. Therefore, the best that they can do is try to wait out the storm.