Tech investors finally got some relief this past week, as the Nasdaq broke a seven-week losing streak, its worst stretch since the dot-com bust of 2001.
With five months in the books, 2022 has been a dark year for tech so far. Nobody knows that more than investors in cloud computing companies, which were among the darlings of the past five years, particularly during the stay-home days of the pandemic.
Paradoxically, growth remains robust and businesses are benefiting as economies re-open, but investors are selling anyway.
Bill.com, Blend Labs and SentinelOne are all still doubling their revenue year over year, at 179%, 124% and 120%, respectively. Yet the trio is worth around half of what they were at the end of 2021. The market has taken a sledgehammer to the entire basket.
Byron Deeter of Bessemer Venture Partners, an investor in cloud start-ups and one of the most vocal cloud-stock commentators observed earlier this month that the revenue multiples for the firm’s BVP Nasdaq Emerging Cloud Index had fallen back to where they were in 2017.
