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.
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(This article has been updated.)