Forget FANG — so far in 2019, the cloud kings are the technology sector’s real winners, CNBC’s Jim Cramer said Thursday after a strong, growth-filled earnings report from enterprise-facing cloud company ServiceNow.
ServiceNow, for one, delivered more than 30 percent year-over-year growth across the board. The stock has now surged some 52 percent from its late-2018 lows. And while it’s “the best of the bunch” so far, it’s not the only cloud stock doing well in this “choppy environment,” Cramer said.
Since the late-2018 lows, VMware has gained over 37 percent, Salesforce.com has climbed nearly 34 percent, Workday is up 54 percent, Splunk has tacked on 49 percent and even Adobe, the weakest of the group, has rallied 21 percent, he noted, adding that Adobe being up only about 9 percent for may be a buying opportunity.
“These are classic worldwide secular growth stories that don’t need a strong economy because they help other businesses trim the fat and increase their margins, and businesses always want to cut costs,” Cramer said. “So when someone says the king is dead, you just come back and say long live the king.”