This analysis includes some very interesting metrics on valuing publicly traded cloud companies. It also has a chart that shows how high growth cloud companies have become 2-3 times more expensive...
This analysis includes some very interesting metrics on valuing publicly traded cloud companies.
It also has a chart that shows how high growth cloud companies have become 2-3 times more expensive since the pandemic started.
Back in an earlier analysis the author listed three possible causes for this.
Digital Transformation Expectations: There is an expectation that digital transformations will accelerate, pulling forward growth
The Money Supply: Interest rates are near zero meaning the attractiveness of equities vs bonds has skyrocketed
Relative attractiveness of SaaS / Cloud businesses: there is reason to believe the sector has actually positively benefited from Covid
All three of these reasons no longer hold true, yet multiples are still historically high.
I personally think there is a fourth reason that still holds true... the meme investors
This analysis includes some very interesting metrics on valuing publicly traded cloud companies.
It also has a chart that shows how high growth cloud companies have become 2-3 times more expensive since the pandemic started.
Back in an earlier analysis the author listed three possible causes for this.
All three of these reasons no longer hold true, yet multiples are still historically high.
I personally think there is a fourth reason that still holds true... the meme investors