Splunk Goes Splunk, Salesforce and Twilio Tumble as Cloud Stocks Fall
TheStreet

Cloud stocks are getting beaten up badly Monday, as Twilio Inc (TWLO) , Salesforce (CRM) , and Zuora Inc (ZUO)  were leading the group down. 

The decline comes as the Nasdaq plummeted more than 3%, bringing its year-to-date gain to just 1.69%. The First Trust Cloud Computing ETF (SKYY)   fell  3.53% on Monday afternoon. 

Twilio, which has had a great year, is getting hammered. The cloud communications company fell 13.76% to $76.90 a share. Its year-to-date gain is still 227%. 

Salesforce fell 8.71% to $121.01 a share, bringing its year-to-date gain down to 19%. 

Zev Fima, research analyst for Jim Cramer's Action Alerts Plus portfolio, which owns Salesforce, still sees a bright future for its stock. "Salesforce.com's extensive suite of products enables its clients to gain a 360-degree view of its customers, and this is a crucial aspect that is a must-have to survive in this business world," Fima said. "This gives us confidence that the weakness we are seeing is temporary, because simply put, the world is becoming more digitized -- the 'Fourth Industrial Revolution' so to speak -- and Salesforce is the company teaching other companies how to put the data they are collecting to use in a way that is accretive to the bottom line."

Zuora, meanwhile, fell 14.33% to $17.76 a share. The company, which allows companies to launch cloud-based subscriptions businesses, hit the market in April at $20 a share and rose above $30 in June. After dropping briefly, it hit $35 a share at the end of August. It's now at a 10% loss for the year as a result of Monday's selling action. 

Splunk Inc (SPLK) was also falling hard Monday. The search cloud software provider traded down 11.19% to $89.27 a share, bringing its gain for the year to 8%. Splunk's year-to-date gain stood at 47% at the beginning of September.

Salesforce is a holding in Jim Cramer's Action Alerts PLUS portfolio and club for investors. Want to be alerted before Jim Cramer buys or sells CRM? Learn more now.

(This article has been updated.)

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