Why Snowflake, Twilio, and HubSpot Tanked Today
Shares of enterprise software stocks Snowflake (NYSE: SNOW), Twilio (NYSE: TWLO), and HubSpot (NYSE: HUBS) fell more than the market Tuesday, down 3.3%, 4.1%, and 2.8%, respectively, as of 1:39 p.m. ET.
Software stocks are struggling broadly, as long-term bond yields remained high, while today the International Monetary Fund (IMF) downgraded the global economy. Furthermore, Snowflake and Twilio saw lukewarm analyst notes today and lower price targets, hurting these former growth darlings even further.
Long-term Treasury bond yields rose early this morning, with the 10-year Treasury yield nearly touching 4% before retreating to about 3.89%, where it started the day. The 10-year yield has more than doubled this year, hurting valuations across a host of asset classes. High long-term bond yields tend to especially hurt growth stocks, with the bulk of their earnings far out in the future. That remains the case for these three stocks, as each currently garners hefty net losses.
Source Fool.com
