Why CrowdStrike, Snowflake, and Datadog Plunged Today
Shares of Snowflake (NYSE: SNOW), CrowdStrike Holdings (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) all fell hard Tuesday, down 5.7%, 6.6%, and 5%, respectively, as of 12:30 p.m. ET.
These best-in-class digital transformation names in cloud data lakes, cybersecurity, and application observability are all at the cutting edge of enterprise innovation today. However, they are all very high-priced growth stocks. Since the economy seems to be slowing at a rapid pace and each stock has had a nice run over the past few weeks, it appears investors are taking chips off the table ahead of earnings.
CrowdStrike did unveil a new innovation today, but it appears macroeconomic issues enhanced by a bad growth outlook from the International Monetary Fund (IMF) is overwhelming any company-specific news today.
Source Fool.com
