Feb 09, 2016 04:30 PM EST

Cloud Business Latest News: A Dark Day For Software Companies

Cloud business latest news seems to be dark and grim. Both Tableau Software and LinkedIn have been hit in the stock market last Friday and are down 40 percent. An additional 13 U.S. software companies have suffered the same fate and fell at least 10 percent. About 15 other software firms also plunged 5 percent, some even more.

New public companies such as Hubspot, New Relic and Zendesk, which have not yet turned a profit since they went public, have been hammered as well. The cloud business latest news is that Hubspot's and Zednecks stocks are both down 20 percent, while stocks of New Relic suffered a loss that is slightly greater at 23 percent.

Although LinkedIn was the bigger company, analysts stated that statements from Tableau, a date visualization software company, are hurting the wider market.

Tableau CEO Christian Chabot warned of "...some softness in spending, especially in North America."

According to Thomson Reuters, analysts have projected Tableau's earnings at $179.5 million, but the company's forecast is only $160 to $165 million. Before Friday, the company was up 164 percent based on its 2013 IPO. Now, it is only up by 37 percent.

"This is the first time we have heard a high-quality enterprise software name cite a slowdown in I.T. spending," Matthew Hedberg, an analyst at RBC Capital Markets said. He has a buy rating on the stock.

"There is a belief among investors that this could foreshadow other high multiple names getting nailed in the first quarter," Hedberg added.

A report has examined several factors that hinder cloud computing progress. One of them is weak cloud computing legal frameworks in many countries. Another is cloud computing technology disagreements. And a third one is the existence of cloud computing cynics.

Cloud computing has progressed to such extent that now, many companies and individuals around the world are relying on this system for their business and individual activities. This cloud business latest news could affect their continuous use of the system.

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
TRENDING ON THE WEB

Join the Conversation

Real Time Analytics