Cloud computing will also show strong growth in 2022

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Cloud computing will also show strong growth in 2022

TU IS

By Christopher Gannatti

When you think of cloud computing companies this year, the most likely place to start is performance1:

  • The BVP Nasdaq Emerging Cloud Index fell from its high last November to its short-term low in June 60.20%.
  • In comparison, the S&P 500 and Nasdaq 100 indices are down 20.99% and 31.06%, respectively, over the same period.

However, from June 16 to August 22 of this year2:

  • The BVP Nasdaq Emerging Cloud Index returned 17.56%.
  • The S&P 500 and Nasdaq 100 indices returned 13.16% and 16.03%, respectively, over the same period.

The bottom line: The dominant force behind cloud computing company performance has been macroeconomic in nature, meaning cloud company valuations have fallen as the US Federal Reserve and other central banks tightened monetary policy to combat inflation. If investors “feel” that inflation is in any way abating — and central banks may subsequently slow the pace of tightening — there is…



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