Why Datadog, MongoDB, and CrowdStrike Were Sinking Today
Shares of cloud-based software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and CrowdStrike (NASDAQ: CRWD) were sinking this morning, down 7.3%, 4.1%, and 5.6%, respectively, as of 11:20 a.m. ET.
There wasn't much company-specific news out of these three today, but it appears all are falling hard based on commentary from Microsoft (NASDAQ: MSFT), after the cloud giant released its earnings results last night for the second quarter of its fiscal 2023, ended Dec. 31, 2022.
Microsoft stock actually rose initially after the report, as its quarterly cloud numbers came in better than feared; however, when giving guidance on the post-release conference call, management pointed to a sharper slowdown in the current quarter. And if a defensive, competitively advantaged juggernaut like Microsoft is slowing down that much, it makes these more expensive and profitless software-as-a-service (SaaS) companies more vulnerable.
Source Fool.com
