Why Pure Storage, VirnetX Holding, and Organogenesis Holdings Slumped Today
The stock market kept plugging along on Friday, drifting throughout much of the session as investors seemed content to remain patient for a resolution on certain key issues. In that environment, market participants paid a lot of attention to individual companies, looking for hints about the health of certain sectors of the economy. Some stocks posted substantial declines, and Pure Storage (NYSE: PSTG), VirnetX Holding (NYSEMKT: VHC), and Organogenesis Holdings (NASDAQ: ORGO) were among the worst performers. Here's why they did so poorly.
Shares of Pure Storage fell 15% after the data solutions specialist reported its third-quarter financial results. Revenue rose 15% from the year-earlier period, with several product releases that aimed to help its clients make better use of their data via cloud-computing platforms. Yet losses widened from a year ago, and Pure Storage wasn't able to produce bottom-line growth even on an adjusted basis. More importantly, the rate of growth wasn't as high as shareholders had wanted to see. Pure Storage's guidance for the fourth quarter and the rest of the year also raised some concerns, and that made growth-oriented investors less comfortable with the company's prospects.
Image source: Pure Storage.
Source Fool.com
