Cloud technology stocks have fallen around or more than 20 % from their most precent peaks.
Earlier cloud stocks were trading at Price/Sales ratio of 23 on average. The Price/Sales ratio is used to compare cloud stocks since most listed companies active in cloud computing are not profitable.
In my opinion, if a cloud stock is growing revenue at more than 20 % on a yearly bases, Price/Sales ration of 14 is justified. If a listed cloud company is growing revenue year on year at 30 %, I think a Price/Sales ratio of 17 is reasonable.
And all my opinions expressed above are predicated on the firm assumption that the particular listed cloud stocks have envisaged and plan a step by step plan to profitability. In short, cloud computing companies, as all other businesses should fulfil their base mission -> earn money, create value for their shareholders.
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