Over the past several years, the cloud software industry has generally been viewed as an unstoppable force that can maintain impressive revenue growth in all economic environments. However, Amazon’s earnings report demonstrated that cloud computing isn’t invincible.
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Indeed, Amazon’s (NASDAQ:AMZN) AWS revenue came in short of analysts’ expectations, with the firm disappointing with guidance as well. Understandably, this hit the overall cloud market, as the following cloud-themed ETFs saw declines in value today:
- First Trust Cloud Computing ETF (SKYY)
- Global X Cloud Computing ETF (CLOU)
- WisdomTree Cloud Computing Fund (WCLD)
Taking a look at SKYY, which has the most assets under management out of the three, we can see that it has been on a steady decline over the past 12 months. In fact, SKYY has lost almost 30% of its value.