Why Snowflake, Datadog, and MongoDB Fell Today
Shares of enterprise software giants Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) were plunging on Monday, down by 8.7%, 6.4%, and 9.4%, respectively, as of 3:06 p.m. ET.
There wasn't much company-specific news today, although Snowflake reported earnings last week, and MongoDB will report tomorrow. Rather, today's moves likely had to do with fears that inflation may not have fallen as much as hoped last month. Friday's strong jobs and wages report, combined with today's stronger-than-expected services Purchasing Managers' Index (PMI) reading, showed the economy may be stronger than generally thought -- surprising, especially since recent financial results and guidance in the software industry have been less than stellar.
Paradoxically, today's strong economic numbers are bad for longer-duration growth stocks, such as these three.
Source Fool.com
