Cloud stocks slipped on Tuesday, after one of the more prominent ones, Datadog , lowered its full-year revenue guidance as organizations remain engaged in cost-saving exercises.
Then inflation hit, central bankers raised interest rates, and investors began selling holdings in fast-growing cloud stocks and rotating into safer investments that could more consistently offer returns.
Executives at many cloud companies responded by reducing overhead, sometimes in the form of layoffs.
Cloud stocks began to rebound, but many, including Datadog, have yet to trade above their record highs from 2021.
Like Datadog, Everbridge , whose software helps companies respond to emergencies, lowered its growth expectations for the full year on Tuesday.
Persons:
Datadog, Refinitiv, Olivier Pomel, Pomel, Bernstein, Peter Weed, Covid, RingCentral, Hewlett Packard, Tarek Robbiati, Vlad Shmunis, Sonalee Parekh, Patrick Brickley
Organizations:
Computing Fund, Bernstein Research, Nasdaq
Locations:
U.S, Smartsheet, Snowflake