NEW YORK, Dec. 27, 2025, 12:56 p.m. ET — Market closed
U.S. stock markets are shut for the weekend, and cloud computing stocks are heading into the final trading days of 2025 with a familiar mix of tailwinds and stress tests: accelerating AI-driven data-center investment, easing (but still meaningful) rate sensitivity, and recurring investor focus on cloud uptime and concentration risk.
Friday’s post-Christmas session ended nearly flat in light volume, snapping a short winning streak but keeping the broader tone constructive heading into year-end. The Dow dipped 0.04%, the S&P 500 slipped 0.03%, and the Nasdaq Composite lost 0.09%, according to Reuters. Carson Group chief market strategist Ryan Detrick described the mood as the market “catching our breath” after a strong rally, while investors watch the seasonal “Santa Claus rally” window that runs into early January. [1]
For investors following cloud computing stocks via ETFs and bellwether names, that “catch-your-breath” tape matters: many cloud and software names remain long-duration equities—meaning their valuations can move quickly as rates and growth expectations shift.
Where “cloud computing stocks” stand right now: CLOU, SKYY, and WCLD into the weekend
One of the most direct “one-ticker” ways investors play the theme is the Global X Cloud Computing ETF (CLOU), which holds a basket of public companies tied to cloud software and infrastructure. Global X lists 37 holdings, $273.65 million in net assets, and a 0.68% total expense ratio (as of Dec. 26, 2025), with the fund trading on Nasdaq. [2]
In the last regular session (Friday), CLOU closed at $22.92, up 0.17%, and later traded lower in after-hours at $22.73.
Peers finished Friday modestly higher as well:
- First Trust Cloud Computing ETF (SKYY) closed at $132.41 (+0.22%) and was indicated higher after-hours at $133.41. [3]
- WisdomTree Cloud Computing Fund (WCLD) closed at $35.66 (+0.42%). [4]
Those moves look small—but in a thin, year-end tape, even “quiet” closes can mask sharp single-stock dispersion under the surface, especially among smaller-cap SaaS names that many cloud ETFs hold.
A key risk investors keep pricing: cloud volatility and concentration
A fresh Seeking Alpha analysis published Friday highlighted why cloud-themed ETFs can feel like “AI beta with extra torque.” The piece argued that CLOU’s portfolio skews smaller-cap and can be highly volatile, citing roughly 30% annualized volatility, and noted the fund’s higher fee versus some peers—while also emphasizing that CLOU’s exposure spans multiple cloud layers (SaaS, PaaS, IaaS) and includes some data-center-related positions. [5]
That tradeoff—broad thematic exposure but higher volatility—becomes especially relevant into the next session because the market’s macro narrative is shifting quickly from “AI demand at any price” to “AI demand, but show me durable margins and cash flow.”
The last 48 hours: AWS reliability headlines resurface (and why that can move cloud stocks)
In the past 48 hours, cloud reliability came back into the spotlight after a wave of user complaints and social-media chatter pointed to a potential Amazon Web Services disruption. AWS publicly denied a widespread outage, saying its services were operating normally and attributing the speculation to “an event elsewhere on the internet,” while urging users to rely on its official service status resources, according to Business Today. [6]
Even when a major provider disputes the outage narrative, the episode matters for cloud investors for two reasons:
- Operational-risk sensitivity is higher than it used to be. Enterprises increasingly design around multi-region and multi-cloud resilience, but incidents—real or rumored—can still pressure near-term sentiment around cloud concentration.
- Cloud ETFs often bundle “provider + dependent ecosystem.” A single reliability headline can ripple across software names whose customer experience, transactions, or uptime depend on hyperscalers.
Forecasts and the bigger driver: AI infrastructure capex is pulling the cloud forward
The strongest fundamental pillar under cloud computing stocks remains the AI infrastructure buildout.
A Nasdaq-hosted market note from Zacks Equity Research published Friday said the “AI trade,” supported by cloud computing and data centers, still has room to run—highlighting aggressive long-range forecasts for AI infrastructure and data-center capital spending. The same note cited projections from Goldman Sachs and Bank of America that AI infrastructure capex could surpass $1 trillion in 2028, and pointed to multi-trillion-dollar totals projected into 2030 by other forecasters, including McKinsey & Co. [7]
Just as important for cloud-stock valuations: the same Zacks note said markets are looking for additional rate cuts in 2026 and referenced CME FedWatch probabilities showing expectations centered on an April cut (at the time of publication). [8]
For cloud investing, that combination—rising AI demand + the possibility of lower rates—is the core reason investors keep returning to the theme, even after bouts of volatility.
What analysts are emphasizing now: the “big three” cloud platforms and their spending intensity
A separate Zacks piece published Friday on Nasdaq argued that an AI-driven cloud boom into 2026 favors the megacap platform leaders—Amazon (AWS), Microsoft (Azure), and Alphabet (Google Cloud)—because they control the core infrastructure and are scaling capacity aggressively. [9]
Some of the key data points highlighted in that analysis:
- Amazon / AWS: Zacks cited AWS revenue of $33.01 billion in the third quarter of 2025 (up 20.2% year over year) and quoted CEO Andy Jassy saying AWS is “growing at a pace we haven’t seen since 2022,” with capacity additions over the past year. The analysis also noted Amazon raised its 2025 capex outlook to $125 billion, with CFO Brian Olsavsky indicating capex could rise again next year. [10]
- Microsoft / Azure: Zacks pointed to Microsoft’s Intelligent Cloud revenue of $30.9 billion (up 28.3% year over year) and said Azure grew 40% year over year in the period discussed. It also cited $34.9 billion of capex in the first quarter, largely tied to AI data-center buildout. [11]
- Alphabet / Google Cloud: Zacks said Alphabet raised 2025 capex into a $91–$93 billion range and cited cloud revenue of $15.16 billion (up 32% year over year) along with a large cloud backlog figure cited in the piece. [12]
Whether investors buy those exact stock calls or not, the through-line is clear: cloud growth is increasingly inseparable from AI infrastructure investment, and the hyperscalers are treating capacity as a strategic weapon going into 2026.
Valuation check: SaaS is cheaper than 2021, but “exuberance” is creeping back
While AI infrastructure enthusiasm is real, cloud-stock investors are also watching valuation discipline—particularly in SaaS-heavy baskets.
In a Dec. 26 edition of his Clouded Judgement newsletter, investor and writer Jamin Ball argued the market is setting up for renewed exuberance in 2026 and shared a valuation snapshot for public cloud software. Ball reported an overall median EV/next-twelve-month revenue multiple of 4.7x, while the “top 5” median sat far higher at 20.9x—a gap that underscores how expensive the market’s favorite growth stories remain. [13]
That’s the push-pull for cloud ETFs right now:
- If rate expectations ease and AI-driven demand accelerates, high-multiple cloud names can expand quickly.
- If rates back up or growth disappoints, the same names can de-rate fast—even if the long-term story remains intact.
What investors should know before the next session
Because markets are closed today, the practical question becomes: what can change between now and Monday’s open?
Here’s what cloud-computing-stock investors typically watch into the next session—especially in the final, thinly traded days of the year:
1) Year-end liquidity can exaggerate moves
Friday’s Reuters wrap stressed the low-volume environment. That can amplify ETF flows, tax-related repositioning, and sharp factor rotations—particularly in growth and tech. [14]
2) Reliability headlines can still jolt sentiment
Even disputed outage narratives can pressure the “cloud complex” briefly, because the market increasingly prices operational resilience and concentration risk as part of the investment thesis. [15]
3) The macro fulcrum remains rates vs. AI capex
If traders lean harder into 2026 rate cuts, cloud and SaaS baskets often catch a bid; if the tape turns toward “higher-for-longer,” multiples can compress. [16]
4) Choose your exposure on purpose
- If you want a basket approach, CLOU/SKYY/WCLD provide different mixes of cloud infrastructure and SaaS exposure. [17]
- If you want the platform leaders, analysts continue to frame Amazon, Microsoft, and Alphabet as primary beneficiaries of an AI-driven cloud cycle—though capex intensity (and expectations) are high. [18]
Bottom line
With the market closed for the weekend, cloud computing stocks are entering Monday’s session with the broader market near record territory, an AI-driven capex story still building, and valuations that can swing sharply on rates and sentiment. Friday’s modest moves in CLOU, SKYY, and WCLD don’t necessarily signal complacency—rather, they reflect a holiday tape where the next catalyst (macro, earnings guidance, capex commentary, or even cloud reliability headlines) can quickly reset positioning. [19]
References
1. www.reuters.com, 2. www.globalxetfs.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. seekingalpha.com, 6. www.businesstoday.in, 7. www.nasdaq.com, 8. www.nasdaq.com, 9. www.nasdaq.com, 10. www.nasdaq.com, 11. www.nasdaq.com, 12. www.nasdaq.com, 13. cloudedjudgement.substack.com, 14. www.reuters.com, 15. www.businesstoday.in, 16. www.nasdaq.com, 17. www.globalxetfs.com, 18. www.nasdaq.com, 19. www.reuters.com
