Shulou(Shulou.com)11/24 Report--

Sina Technology News Beijing time on August 15 morning news, it is reported that at the beginning of this year, U. S. cloud computing software stocks have fallen, but now the prices of many stocks have rebounded by 50% from their lows. The WisdomTree cloud computing fund has risen 26 per cent in the past three months, compared with less than 9 per cent for the s & p 500 over the same period. In spite of this, the cloud index is still weaker than the market so far this year.

Although cloud computing stocks were sold off at low prices in the first half of this year, most of the companies behind the stocks are still growing steadily, indicating that the market needs to be strong. The market may be overadjusted, companies are still healthy, and cloud computing stocks will rise again when confidence is restored. Because of this, some investors have been betting on cloud computing software stocks over the past few months, trying to seize the opportunity to make money.

Elliot Robinson (Elliott Robinson), a partner at Bessemer Venture Partners, believes that there are signs of recovery in the market, and the fundamentals of cloud software companies have not fallen off a cliff.

GitLab, which provides source code management tools to software developers, saw its shares plunge 75% between November and April, but the situation began to reverse in June. First-quarter GitLab results fell short of analysts' expectations, but revenue rose 75 per cent year-on-year.

"in the short term, demand for GitLab is likely to be more stable than optional and complex IT solutions, as it can help companies save costs and improve operational efficiency," Goldman Sachs analysts said in a report.

GitLab's share price has doubled in the past three months, making it the fastest-growing stock among WisdomTree funds. Confluent, a maker of data-processing software, ranked second in growth, up 81 per cent since mid-May. On August 3rd Confluent reported revenue growth of 58 per cent in the second quarter and is expected to grow by at least 46 per cent this year.

Revenue of Atlassian, a developer of collaborative software, rose 36 per cent in the fourth quarter, and the company's share price rose 67 per cent in three months. Revenue at restaurant software developer Toast rose 58 per cent over the same period, and Toast shares have risen 55 per cent since May 12.

The price consumers pay for food and services rose less in July than in June, according to the Bureau of Labor Statistics on Wednesday, as share prices rose as the market thought the Fed might slow the pace of raising interest rates.

While cloud computing stocks are doing well, other industries are not so lucky, especially those that are deeply linked to consumers.

Shopify shares have risen less than 30 per cent in the past three months and are still down 77 per cent from their highs. Online retailers use Shopify software to manage payment, inventory and logistics processes. Shopify has warned that inflation and higher interest rates could put pressure on second-half results.

Jamin Ball, an investor from Altimeter Capital, said Friday that some buyers are actively buying software stocks, and they may be in front of reality. Jamin Ball expects the United States to enter a recession, cut interest rates next year, and then inflation will ease. "based on the data we have right now, the market seems a little too optimistic," he said. we have not entered a recession yet, but a recession is coming, possibly in 2023. "

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