[Week 39 | +4.6% vs. -0.6%]: Cloud stocks outperformed the S&P 500 for the week ending 9/25, increasing +4.6% vs. the index declining -0.6%. Unlike last week, FAANMG was a positive contributor to performance (+2.7), while nearly EVERYTHING else was in the red (equal-weight index: -3.1%).
What's driving volatility?
The potential size and scope of an additional stimulus package
An uptick in COVID cases paired with the coming winter spuring concerns of a second-wave (not to mention already concerning trends in France and Spain)
The speed and efficacy of various potential COVID vaccines
Investors debating how much of recent trends will lead to permanent behavioral changes post-COVID (i.e. eCommerce, telemedicine, at-home fitness, WFH-tech)
Source: BreakingSaaS.com
Source: BreakingSaaS.com
🤷 Recent IPOs 🤷
God speed to Robinhood traders picking IPO stonks...
$U (+31.5%). D.A. Davidson Initiated w/ $100 PT. "We like Unity for four reasons: exposure to the entire gaming market; significant growth opportunities in applications beyond gaming; a hybrid revenue model with plenty of upside; and potential beneficiary of the Epic Games vs. Apple feud (call option)"
$FROG (+16.9%). No company news... but likely benefitting from stepping out of $SNOWs IPO shadow. Missed out? Great industry write-up & comparison @ PublicComps... and dare we say a popular podcast from Motley Fool
$SNOW (-4.6%). Speaking of... investors are digesting the world's most-hyped IPO. Normal investors (aka not Warren Buffet) are now down 10% from the close of it's first trading day
$SUMO (-11.4%). ... Surpassed only by $SUMO falling 17.4% since its IPO and essentially in a straight line
$KC (-26%.1%). The company announced an 8mm share secondary + 9.7mm share offering from existing shareholders
Source: BreakingSaaS.com
📰 Now Read These
$SHOP (+6.6%). Shopify says two support staff stole customer data from sellers
$TWLO (+8.7%). Microsoft challenges Twilio with the launch of Azure Communication Services
$CRWD (+3.8%). CrowdStrike to Acquire Preempt Security to Offer Customers Enhanced Zero Trust Security Capabilities
😢 Investors not in tech
Source: FinViz.com