Shares of several cloud software companies rose today in the wake of positive earnings news from NetSuite and bullish comments from an analyst at Wedbush Securities.
The biggest move was by Workday, the cloud-based supplier of human resources and corporate finance software, which rose nine percent to close at $73.30. ServiceNow, the supplier of IT support software, rose almost six percent to close at $49.17. Salesforce.com, the biggest cloud software company, rose 3.3 percent to $50.17. NetSuite, which yesterday reported earnings that were better than what analysts had expected, rose 4.5 percent to $76.87.
Cloud shares have fallen considerably in the last two months or so after peaking in late February. Some analysts have portrayed the drop as a buying opportunity. In a research note to clients, analysts at Wedbush Securities made the case again, arguing that their valuations are below their three-year averages.
The downward moves by all these cloud names may explain why another cloud company hasn’t priced its IPO yet. When it released its S1 filing with the Securities and Exchange Commission in March, cloud services player Box was expected to price sometime in April. With a day left in the month, that seems extremely unlikely, as there’s no sign yet of even a road show.
Box could be waiting until there’s a shift in sentiment around the cloud, and maybe a few more positive earnings reports like yesterday’s from NetSuite, ServiceNow last week and perhaps another from Workday (due in mid- to late May) to help move that process along.
This article originally appeared on Recode.net.