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NASDAQ Emerging Cloud

Cloud Value - Even before the market correction, it was expected that Cloud Computing stocks would be more resilient.

Despite the drop of more than 52% in the NASDAQ Emerging cloud between the peak in November '21 and September '22, we still see growth of more than 30% if we consider the lowest point in the index at the beginning of the pandemic (March of 20).

Looking at the most valuable companies, even after strong adjustments we see the multiples of market value per annual revenue at still very high levels: in our sample we see companies with SaaS business models, with strong growth, rewarded with multiples between 26x from Snowflake and 18x of Datadog, which we believe is in part a recognition of the future growth potential and quality of these companies, and, at the same time, a shortage of capital allocation that still creates some distortions.

In Brazil, we have a Cloud ecosystem largely based on technology services with specialized labor and few businesses with business models based on SaaS products and platforms. However, we have huge demand and many large and medium-sized companies converting their infrastructure and services to the cloud.

We believe that there are great opportunities here, as abroad, for Cloud cost control platforms, Cloud Security, Monitoring, among others, which can take advantage of local demand but also develop their products and accelerate growth with a view to the global market.


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