Cloud stocks falter as Datadog trims 2023 revenue expectations
Summary
Then inflation hit, central bankers raised interest rates, and investors began selling holdings in fast-growing cloud stocks and rotating into safer investments that could more consistently offer returns. In the past several months, the rise of generative artificial intelligence services such as startup OpenAIs ChatGPT chatbot have made investors more interested in adopting similar technologies and additional tools to help with the shift. They analysts wrote that they expect growth to return as enterprise spending budgets recover and venture capitalists start pouring large pools of money into startups again. Late on Monday cloud communications software maker RingCentral said Hewlett Packard Enterprises finance chief, Tarek Robbiati, will replace co-founder Vlad Shmunis as CEO later this month. "Sales cycles remain elevated versus last year, and customer buying decisions continue to go through additional layers of approval," RingCentrals chief financial officer, Sonalee Parekh, said on a conference call with analysts.
