Why Confluent Stock Plunged 27% Lower Last Month
The stock market fared well in November, and the S&P 500 (SNPINDEX: ^GSPC) index rose by 8.9% in 30 days. However, Confluent (NASDAQ: CFLT) missed the memo. Shares of the data-streaming technology expert fell 26.6% in November 2023, according to data from S&P Global Market Intelligence. The big drop sprung from Confluent's third-quarter earnings report at the very start of the month, or rather, from management's market forecast in that report.
There was nothing wrong with the data mover's earnings report. The average analyst expected break-even earnings on sales near $195 million. The actual results exceeded these targets, as the bottom line swung from a net loss of $0.13 per share to positive earnings of $0.02 per share. Revenues rose 32% year over year, landing at $200 million.
That was not the problem here. Instead, many Confluent investors headed for the exits after the earnings call, where management issued revenue guidance below the Street projections at the time.
Source Fool.com
