In simple terms, assume every cloud is a computer and needs network bandwidth, security etc.
Physical computer needs time to setup, but cloud is dynamic and within minutes setup. Whatever applies to a computer is applicable to every cloud, but dynamic increases/decreases on bandwidth & security changes.
In addition, cloud infrastructure needs additional controls such as sharing common bandwidth controls, data transfer and security.
In short Cloud is a virtual computer, a service provider can make hundreds of virtual computers in minutes etc.
All clouds are at over bought positions, look at RSI. Market brings up high before the drop heavily. This is what I track, both S&P and Nasdaq is high range, bound to correct in short cycle. I buy stocks when RSI is less than 40 range normally and sell above 70 range.
All cloud stocks are having a rough time, except my super stable ADBE. It’s setting up for a monster rally in the back half of the year. Money is flowing back to retail and consumer internet.
Motif has a lot of “themes” you can invest in. A theme is pretty much a self-assembled ETF. Its “Cloud Computing” motif is missing some important names. It’s more of a infrastructure layer play. Here are its holdings:
All the cloud kings are doing well, trust Jim Cramer.
