Conspiracy theorists, please rest! Investors remain keen on technology offerings

Sohu It news December 14, according to the Wall Street Journal website reported that in the past week, if the technology industry companies competing listing can prove anything, then this must be proof that investors are still willing to pay high prices, so that the potential of the future high growth of technology companies. Most companies in the so-called "cloud services" sector have been hit by the downside of falling share prices this year. But it has not cooled the big data companies stripped from Yahoo, Hortonworks and the SaaS-based cloud application monitoring management platform, New Relic, which has been greeted enthusiastically by investors at the time of the IPO. All two companies have been betting on venture capital, which began trading in Friday, with shares rising more than 40% per cent on the day. Prior to that, the two companies had already priced their initial price ranges beyond their IPO offerings. In addition, online loan marketing platform LendingClub completed its IPO in the past Thursday, the company on the first day of the IPO also ushered in a similar good situation, the share price burst 56% closed. As a result, the rapid growth momentum in the technology sector still attracts the industry to overestimate the value of these companies-although some technology companies have so far not been profitable. Hortonworks company in the last two quarters, the revenue has doubled in Year-on-year. By the Friday afternoon of the New York stock market, the company's share price revenue was about 23 times times higher. In addition, new Relic's revenue growth averaged 84% per cent in the last two quarters, with the company's shares trading at about 18 times times the Friday afternoon of New York stock market. Such a high level of share-price revenue is a huge similarity to other high-growth cloud companies such as Workday, NetSuite and Zendesk. Such a situation would be an encouraging good news for Silicon Valley's technology companies, which have been given more than 1 billion of dollars in valuations and growth by VC-funded investors. In these companies, many companies are waiting to be able to support their IPO market conditions, so that their valuations can be fairly reflected. The vendor box, which is based on cloud storage services, said in an updated version of the file that the company's revenues have risen by as much as 76% per cent over the past two quarters, but the company continues to suffer from operating losses. But it should be recalled that investors who bought shares of these companies on the day of the technology company IPO, or investors looking for more tech companies to make IPOs, should remember – the combination of the fast-growing companies they were buying stocks had been mixed. The Nasdaq Internet index has fallen nearly 2% per cent this year, while most of the BVP Cloud Index has been in a slump this year. In addition, there is a need to remind investors that these emerging cloud-tech upstarts are still facing huge competitive pressures from traditional software giants. For example, AdobThe company's financial report released last week showed a sharp increase in the number of paid subscribers to its fast-growing creative cloud platform, boosted by a 10% per cent surge in Adobe's Friday share price. Meanwhile, Oracle, which is expected to release quarterly financial reports in a few days, will increase its cloud services revenue by as much as 37% per cent in the current fiscal year, according to FactSet, an industry research institute. It is not hard to see that cloud services will certainly face the powerful impact of traditional software giants. At the moment, the valuation of the cloud seems to be more plausible than at the beginning of the year, but the performance at the start of the year is not the best gauge of the current stock price. (Niuniu)