, Columnist
Pass the Antacids for Cloud Software Stocks
Valuations are so high that even good-to-great news isn’t enough to satisfy investors.
This is you and your cloud software stock.
Photographer: Justin Chin/Bloomberg
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How do you feel about roller coasters?
The nauseating jolt of a theme park ride is a useful metaphor for stock prices of young software companies this week. The stock prices of recently public Slack Technologies Inc., PagerDuty Inc. and CrowdStrike Holdings Inc. were punished after what seemed to be good or great earnings reports. But that volatility is the price of valuations that reached stratospheric levels.