Why Shares of HubSpot Fell 24.1% in September
Shares of small and medium business marketing software company HubSpot (NYSE: HUBS) plunged 24.1% in September, according to data from S&P Global Market Intelligence. The plunge marked a big reversal from the stock's impressive 11.7% gain in August after its positive second-quarter earnings report. What caused such a sell-off?
There was actually no material bad news to come out of the company in September. The sell-off can most likely be attributed to a big rotation out of expensive growth stocks and more into lower-priced value stocks on the part of large institutions. The rotation affected not only HubSpot, but also a variety of software stocks that are posting high revenue growth but little in the way of profits.
HubSpot stock sold off in September. Image source: Getty Images.
Source Fool.com
