This Analyst Thinks Cloud Stocks Are Overvalued. Is He Right?
If you think cloud stocks are overvalued, you're not alone.
JPMorgan Chase analyst Mark Murphy slashed his ratings on a number of well-known SaaS (software-as-a-service) companies -- Alteryx (NYSE: AYX), Paycom Software (NYSE: PAYC), Twilio (NYSE: TWLO), Ceridian HCM Holding (NYSE: CDAY), Coupa Software (NASDAQ: COUP), and Smartsheet (NYSE: SMAR) -- arguing that investors were underestimating the impact that the economic downturn would have on them.
Though Murphy slammed those six stocks in particular, his takeaways seemed to apply to the broader cloud software industry, where stocks have posted big gains in recent years, but have also reached lofty valuations. Among his concerns were:
Source Fool.com
