The listed stocks of 85 % + cloud computing services companies are still more than 30 % overvalued.
The smaller cloud computing companies, outside Amazon, Microsoft and Alphabet have mostly been unprofitable and have relied on cheap financing to finance their business as a going concern.
Now that the Federal Reserve has raised the Federal Funds Rate, its leading interest rate which basically influences all interest rates all over the world or in other words the Federal Funds Rate is the global interest rate to 3.75 % to 4.00 % cheap financing is simply not available.
And smaller cloud computing companies, which in numbers terms are most cloud computing companies are close to insolvency. Most of them have not more than 1 year cash surpluses, I estimate.
Even Amazon, Microsoft and Alphabet's cloud computing services revenue growth is either slowing or turning negative.
So all in all, investing in cloud computing has all along been essentially a rates play.
Now that the Federal Reserve is taking the punch bowl away, I forecast most cloud computing companies with listed stocks will not survive in 5 to 10 years down the road.
Cloud computing is the future, however.
So the remaining cloud computing winners, will have extraordinarily high market capitalisation and will realize huge profits.
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