With recent blowout earnings from Red Hat, Inc. (RHT) and strength coming into names like Rackspace Hosting, Inc. (RAX) and EMC Corporation (EMC), both making new 52 week highs recently, I believe the next cloud name to make a move will be Riverbed Technologies, Inc. (RVBD). With earnings after the close on April 25th there is ample time to see a break and hold of RVBD’s down trend and a move to my first target of $42 and then potential new 52 week highs at $44.70.
I would look to potentially be a buyer above $38.58 with volume. Another name in the cloud space to keep an eye on is Juniper Networks, Inc. (JNPR), which broke its downtrend yesterday with strong buying. I believe JNPR will also make new 52 week highs in the not so distant future.
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By: Marc Sperling
Disclosure: No relevant position