Why Snowflake, Datadog, and MongoDB Plunged Today
Shares of enterprise software disruptors Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) plunged by 6.4%, 6.4%, and 6.3%, respectively, on Tuesday.
There wasn't any material news out of these companies specifically, as most companies are in a quiet period ahead of the earnings reports. However, comments from Bill McDermott, CEO of their enterprise SaaS peer, ServiceNow (NYSE: NOW), on CNBC's Mad Money Monday night could be making investors somewhat nervous about the software sector's upcoming reports. Additionally, since these stocks had all enjoyed a three-week rally heading into this week, some traders may be locking in profits ahead of June's Consumer Price Index report, due out Wednesday.
On Monday night's episode of Mad Money, ServiceNow's McDermott actually gave quite a bullish outlook for technology stocks in general, especially those that cater to enterprise customers. That's because technology helps companies become more efficient, please customers, and limit costs in areas such as labor, where their expenses have been growing.
Source Fool.com
