NEW YORK ( TheStreet) -- It was really inevitable. As hot sectors mature, the multiple folks are willing to pay for earnings has to decline, toward that of the market as a whole.
So this month, all the big cloud-related stocks have fallen faster than the market. Rackspace (RAX), Red Hat (RHT) and VMWare (VMW) are all down over 10% this month, a move that has accelerated as the month has gone on.
One result is that their price-to-earnings multiples are almost getting affordable. VMWare is down to 55, still rich but more in line with the 21.74 of EMC, which owns 80% of it.
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