MGI Analyst Blog
News and unfiltered commentary from analysts at MGI Research.
Cloud Stocks Again Lagged Equity Benchmarks in 1H2014
As was the case in 2013, during the 1H2014 equities of cloud companies have lagged broad market benchmarks. In 2013, the 2nd half of the year reversed the trend - cloud equities not only caught up but also outperformed the market finishing the year up over 32.22% vs. S&P 500 up 29.69%.
As of July 7th 2014, MGI Cloud 30(tm) Index - a portfolio of 30 leading cloud related equities, was at $273.97 - down 4% on a YTD basis.
On a cumulative basis since we have begun tracking MGI Cloud 30 Index, the cloud stocks have vastly outperformed general markets. Since late 2009 when we first created and began tracking MGI Cloud 30, the index has gained almost 174% on a cumulative basis. During the same period, S&P 500 advanced by 69.66%.
A similar and more dramatic sell off took place in 2011 with a 33% correction which was then followed by a reversal to the mean and an outperformance with an over 2% gain in 2011 and a 33% gain in 2012.
Cloud adoption continues to grow - it is a steady process with an increasing number of buyers. The growth in cloud far outpaces GDP growth, inflation and growth in IT budgets.
Marketo (NASDAQ:MKTO) replaced Vocus (NASDAQ:VOCS) as an index component as Vocus was taken private by GTCR for $18 per share.
For additional information, index composition, data or index licensing, please contact MGI Research at 888-801-3644.