In this series, we will analyze the performance of stocks in the First Trust ISE Cloud Computing Index ETF (SKYY) that comprise the Systems Software subsector. Since January 2015, SKYY generated returns of 2.42% to close at $29.18 on August 28, 2015.
In the above chart, we can see that the Technology, Hardware, and Storage subsector generated year-to-date (or YTD) returns of -16.83%. Plus, the IT Consulting and Communications Equipment subsector generated returns of -11.92% and -8.30%, respectively.
Subsectors that have outperformed SKYY include Home Entertainment Software, Specialized REITs, and Internet Retail with returns of 19.87%, 18.55%, and 103.97%, respectively. The stocks in the System Software subsector have generated average YTD returns of -6.80% with VMware (VMW), Oracle (ORCL), and CA Inc. (CA) depreciating by -6.02%, -16.70%, and -10.48%, respectively, in 2015.
Netflix (NFLX) has generated year-to-date returns of 141.04%, whereas Amazon has generated returns of 66.91%. In comparison, Teradata (TDC), Rackspace (RAX), and Brightcove (BCOV) generated returns of -32.49%, -33.22%, and -31.62%, respectively, since January 2015.
VMware reports 2Q15 results
On July 21, 2015, VMware announced its 2Q15 results and reported revenues of $1.52 billion, a 4% increase in comparison to 2Q14. Revenues increased 8% YoY (year-over-year) on a constant currency basis. Non-GAAP (generally accepted accounting principles) revenues for 2Q15 were $1.60 billion, a 10% YoY increase from 2Q14 and a 13% YoY increase on a constant currency basis.