Why PagerDuty, Domo, and Slack Technologies Slumped Today
The stock market closed the week on a quiet note on Friday, as most major benchmarks finished with modest gains. The big piece of news today was the U.S. employment report, which showed that the domestic economy didn't create as many new jobs as some had hoped. Nevertheless, the silver lining was that it gave market participants some reassurance that they'd likely get support from the Fed on future decisions regarding interest rates. Some stocks held back the broader indexes with bad news. PagerDuty (NYSE: PD), Domo (NASDAQ: DOMO), and Slack Technologies (NYSE: WORK) were among the worst performers. Here's why they did so poorly.
Shares of PagerDuty dropped 11% following the digital operations management specialist's release of its second-quarter financial report. The company's fundamental performance looked relatively solid, including a 45% increase in revenue compared to year-ago levels and customer counts rising above the 12,000 mark. Yet net losses widened from year-ago levels on an adjusted basis, and even though PagerDuty boosted its guidance for the full year, investors seemed to want even more from the high-growth stock. Work on collaborations with key partners could be instrumental in generating the revenue growth that shareholders really want to see.
Image source: PagerDuty.
Source Fool.com
