Why Datadog Stock Plunged 20% in April
Shares of Datadog (NASDAQ: DDOG) were down 20.3% in April, according to data provided by S&P Global Market Intelligence. The cloud monitoring and security stock delivered a much larger loss than the S&P 500's 8.8% decline.
The stock market has been severely punishing expensive, unprofitable tech stocks with slowing growth, but Datadog doesn't fit that mold. Revenue is soaring, and the company is even reporting generally accepted accounting principles (GAAP) profits. But as interest rates rise and investors fret about a possible recession, sky-high valuations are becoming a thing of the past.
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Source Fool.com
