Best- And Worst-Performing Cloud Computing Stocks Jan. 6 To
Source: Veeva
The five highest performing cloud computing stocks year-to-date on the Cloud Computing Index are Qualys (NASDAQ: QYLS), Riverbed Technology (NASDAQ:RVBD), Workday (NYSE:WDAY), Juniper Networks (NYSE:JNPR) and VMWare (NYSE:VMW).
A $10K investment in Qualys shares made on January 2th of last year is worth $11,234.00 as of market close Friday, and $10K invested in Workday shares are worth $10,969.00. Included in the comparison is the annualized gain or loss and total gain or loss of IBM, Microsoft, Oracle and SAP shares for the same time period.
The following graphic compares how $10,000 invested on January 2nd of this year in the highest performing cloud computing stocks, in addition to IBM, Microsoft, Oracle and SAP are valued today.
Tracking Veeva Systems
Veeva Systems (NYSE:VEEV) provides cloud-based Customer Relationship Management (CRM), content management and master data management, delivered on The Salesforce platform. Veeva reports having 170 customers today in 75 countries. For 3rd quarter, FY 2014, Veeva reported $54.8M in revenues, up from $35.8M from a year ago, achieving 95% growth in just one year. Net Income and non-GAAP Net Income for the 3rd quarter FY2014 was $6.5M up 13% from $5.7M a year ago. Non-GAAP Net Income was $8.3M for the latest fiscal period, up $6M from a year ago, achieving a 40% increase. Please see Veeva Announces Fiscal 2014 Third Quarter Results for additional information.
Their S1 Statement on file with the Securities and Exchange Commission is an interesting read and shows how a cloud-based company can successfully target on-premise enterprise legacy systems. For a full listing of their filings with the Securities and Exchange Commission see this list. There are many valuable insights in Veeva S1, including the following:
Key members of the management team are from Siebel Systems, which gives the company deep expertise in CRM and increases their probability of success in selling cloud-based systems to replace Siebel Life Sciences on-premise CRM suites.
Keeva has sized the Total Available Market (TAM) for its unique cloud-based life sciences suite of applications at $5B. From the SI: “For the market segments within the life sciences industry that we believe are relevant to our solutions, based on our internal analysis and industry experience, we estimate the total addressable market, including the market segments for sales and marketing automation and related solutions for life sciences sales representatives, regulated content management solutions for life sciences companies, customer master solutions for life sciences companies, and healthcare professional, organization, affiliation and reference data, to be at least $5 billion.”
95% of Veeva subscription services revenue is from their CRM applications. From the S1: “To date, we have derived more than 95% of our subscription services revenues from our Veeva CRM solution, and our Veeva CRM solution has achieved substantial penetration within the U.S.-based sales teams of pharmaceutical and biotechnology companies. If our efforts to further increase the use and adoption of our Veeva CRM solution do not succeed, the growth rate of our revenues may decline.”
Early in their product strategies, Keeva targeted pharma sales forces with their iPad-based IRep application built on the Salesforce platform. Since then, the Salesforce platform has accelerated in the area of mobility support including the Salesforce1 platform today. Providing pharma sales forces with iPads that have immediate access to Salesforce turned into a strong differentiator.
Please see the full Cloud Computing Index for market caps, average volumes, 52-week high and low share prices, Earnings per Share, Price/Earnings Ratio, and Beta. I am using the Google Finance Portfolio option to track the performance of these stocks. For information on how this index was created, see the description at the end of this post. I do not hold equity positions or work for any of the companies mentioned in this blog post or included in the Cloud Computing Index and this post is not meant to provide investment advice. It is simply a glimpse into the performance of these company’s stock prices over time. Please click on the graphic to expand for easier reading.
Best Performing Cloud Computing Stocks, January 6 to January 10, 2014
Worst Performing Cloud Computing Stocks, January 6 to January 10, 2014
Best Performing Cloud Computing Stocks In 2014
Worst Performing Cloud Computing Stocks In 2014
Comparing Cumulative Stock Performance
Performance of the Cloud Computing Index over the last year is compared to NetSuite, Salesforce, IBM, Oracle and SAP is below. This index has been up 18.15% over the last year, with NetSuite (NYSE:N) up 54.31%, Salesforce (NYSE:CRM) up 30.91%, IBM (NYSE:IBM) down 2.27%, Oracle (NYSE:ORCL) up 9.00% and SAP (NYSE:SAP) up 2.02%. Please click on the graphic to expand for easier reading.
Specifics on the Cloud Computing Stock Index
I used The Cloud Times 100 as the basis of the index, selecting twenty companies all of which are publically traded. The latest edition of the Cloud Computing Index is shown here. The filter applied to these companies is that 50% or more of their revenues are generated from cloud-based applications, infrastructure and services.
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