The Surprising Reason Cloud Computing Stocks Tanked This Week

There's little question that Wall Street has a bad case of the jitters thus far in 2022. Nowhere was that more evident than in the cloud computing space this week, when bullish comments by a CEO caused cloud-native stocks to plunge. It also didn't help that the monthly report on inflation was much worse than economists had predicted.

With that as a backdrop, shares of HubSpot (NYSE: HUBS) cratered as much as 15.9% this week, MongoDB (NASDAQ: MDB) tumbled as much as 14.2%, and Twilio (NYSE: TWLO) crumbled as much as 13%. As of the market close on Thursday, the three were still trading lower, down 13.7%, 11.2%, and 12.4%, respectively.

ServiceNow CEO Bill McDermott was the chief executive who offered his prognosis of the economy and the future of tech stocks -- and overall, his take was surprisingly bullish. While he acknowledged the challenges concerning the war in Europe and the resulting high cost of energy, he cited technology as the solution. "This doesn't fundamentally change the narrative that tech is the only way to cut through the crosswinds," McDermott told Jim Cramer during an appearance on CNBC's Mad Money.

Source Fool.com