Today was a poor day for SaaS and cloud companies in the public markets.
From a few points to over seven, it was a sufficiently bad day that the BVP Nasdaq Emerging Cloud Index (an index set up by Bessemer and the Nasdaq to track cloud stocks) fell 2.8 percent, a sharp decline for a single trading period.
The situation, while not great for Slack, isn’t as bad as it might seem; we’ve written that the company’s value decline appears to be driven more by the market deciding to price the company merely richly, instead of extravagantly.
The broader selloff, however — coupled to an implied revenue multiple compression — paints a stagnant picture for SaaS companies more generally.
But at some point, one of these tough days for SaaS and cloud companies won’t be immediately erased.