No doubt, cloud computing stocks have been rallying for more than a year. The Talkin' Cloud Stock Index rose nearly 50 percent in 2010. And recent M&A activity has continued the rally in 2011. In addition to the Time Warner-NaviSite combo, lots of folks have been watching Verizon's buyout of Terremark.
It seems like many cloud stocks are rallying with very little specific news tied to the increases. An example: HR SaaS solution provider Kenexa (KNXA) saw shares rise 13.66% last week to $23.21 with no obvious cause. Although it does look like news that Kenexa CEO Rudy Karsan's business book "We" hit the bestseller lists gave company stock one final boost on Friday.
Oddly enough, cloud ERP provider NetSuite (N) saw a last-minute climb of its own. Despite disclosing an unimpressive long-term outlook, NetSuite finish out the week with a big 11.96% boost to $28.37 per share. Stockholders must be breathing sighs of relief.
As I said at the start, the Talkin' Cloud Stock Index didn't have any real losers last week. But Terremark (TMRK) had the smallest gain -- climbing 0.16% to $18.95 per share. Terremark should hold steady at about that price, since it reflects Verizon's buyout offer.
Before we go, Talkin' Cloud wants to remind you that we only use the stock index to match cloud hype against real stock performance. We don't offer specific financial advice, and whether you buy, sell, or hold is your decision alone.
Make sure to come back next week to see if cloud stocks can keep the upward trend going -- after all, investors can't count on a major acquisition every week.
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