In this article, we’ll examine the performances of cloud computing stocks within the broader technology sector, and we’ll track the weekly performance of the First Trust ISE Cloud Computing ETF (SKYY) as well as its components. SKYY closed at $44.2 with a positive return of 0.7% on Friday, November 20, 2015, generating a profit of 4.3% for the week.
From November 16 to November 20, 2015, the technology sector’s performance was above average. The Global X Social Media ETF (SOCL), the iShares Global Tech ETF (IXN), and the First Trust NASDAQ CEA Smartphone ETF (FONE) generated returns of 5.8%, 4.1%, and 1.1%, respectively, in the trailing five days.
Internet Software & Services was the worst-performing sector in the trailing-five-day period, generating a return of 1.4%. Within the sector, Rackspace Hosting (RAX) generated returns of -2.9% for the trailing five days, followed by Akamai Technologies (AKAM) at -2.8%.
Rackspace’s sudden fall came after its announcement that it would be issuing senior notes worth $500 million at a rate of 6.5%. Rackspace will use part of this amount to repay its outstanding debt to creditors. Moreover, the company may use the remaining proceeds to repurchase shares worth $1 billion.
The next worst-performing sector was the Technology Hardware sector, generating a return of 3.5%. Technology Hardware consists of EMC (EMC), Apple (AAPL), and Hewlett-Packard (HPQ), which showed returns of 1.2%, 6.2%, and 7.3%, respectively, whereas NetApp generated a negative return of 0.83%.
Internet Retail was the best-performing sector, generating a return of 11.8% for the trailing five days. Stock performance remained above average for this sector compared to others.