Xero : Cloud control a lesson in flying / CLOUD operators need to show investors the money

Richard Hemming for The Australian writes: .....(excerpt)...The cloud is lucrative because it means small and medium-sized businesses don’t have to spend thousands on servers and software. It’s all owned and managed directly by companies that manage the software remotely from data centres, which means the customer doesn’t have to spend much money upfront on software or on the upgrades.

Arguably the most successful cloud operator on the Australian Securities Exchange is Xero, which sells its services to small and medium-sized accountants. At $24.28, its shares are below their March high of close to $43, but the company’s market cap is still over $3 billion, and it is yet to make any meaningful sales, let alone earnings.

But if Xero doesn’t start seeing some big money made in the US soon, its stock will continue to decline. This problem is already afflicting others in the sector.  [snip]  To read the full article @ The Australian Click Here. 

The author Richard Hemming is an independent analyst who edits www.undertheradarreport.com.au.