(Updates share movement; adds executive, analyst comments)
By Munsif Vengattil
Nov 28 (Reuters) - Shares of cloud software makers jumped on Wednesday after Salesforce.com Inc’s upbeat quarterly earnings boosted Wall Street’s expectations for the fast-growing sector, which was hammered during the recent sell-off in technology stocks.
The company beat analysts’ estimates for quarterly earnings on Tuesday and forecast 2020 revenue above expectations, with executives expressing confidence about the global macro trends.
“When I speak to CEOs, and that happens probably every single day, especially since these tax cuts that have happened, CEOs have been investing aggressively, and the economy has really been ripping,” co-CEO Marc Benioff said on the conference call.
Shares of Salesforce rose about 8 percent, while those of Twilio Inc, Tableau Software, New Relic Inc , Rapid7 Inc and Workday Inc gained between 4 percent and 7 percent.
Cloud-based services firm Nutanix Inc gained about 10 percent after reporting strong results on Tuesday.
“Benioff’s comments around strong macro in Americas and APAC should remove portions of bear case around uncertain 2019,” Baird analyst Rob Oliver wrote in a note.
Monness Crespi Hardt analyst Brian White described the tone of the post-earnings call as the most bullish in this earnings season from a tech company of Salesforce’s size.
Microsoft Inc, which is riding on the cloud wave, surpassed Apple Inc to become Wall Street’s most valuable company on Wednesday.
The ISE Cloud Computing index climbed 2.3 percent, trimming month-to-date losses.
In October, the index slumped more than 8 percent after six straight months of gains, as investors shed high-growth and high-valuation shares.
Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila