For Investors, ‘Cloud Computing’ Moniker Demands Scrutiny

Hedge fund manager David Einhorn's 66-slide attack on Athenahealth hasn't done much to change the company's share price, which dipped briefly but is now up nearly 2% from where it traded when Mr. Einhorn called the healthcare tech company wildly overvalued.  

Investors may be shrugging off the short seller, but he raises questions about what constitutes a cloud company that caught my attention. He makes his argument at a time when the market is grappling with how to value cloud stocks: The basket of 18 cloud computing companies tracked by The Information has fallen about 24% since the beginning of March. Even Zendesk, whose recent IPO was a boost for the sector, has fallen about 14% from its peak, though it’s still trading above its IPO price.