Here's Why DataDog Stock Dropped 11% Last Month
Shares of (NASDAQ: DDOG) slumped 11% in July, according to data from S&P Global Market Intelligence. The stock struggled with difficult market conditions related to a surprise global IT outage that weighed on tech stocks. Investor risk tolerance is declining because of a cloudy macroeconomic outlook, causing some people to rethink aggressive valuations on growth stocks. Reports of a transformative acquisition in the works contributed to the uncertainty in the weeks leading up to August's quarterly financial report.
Datadog took a big step lower along with most other tech stocks halfway through July. A faulty software update from CrowdStrike (NASDAQ: CRWD) caused computer crashes all over the world for computers running Microsoft's (NASDAQ: MSFT) operating system. Valuations have surged for many tech stocks thanks to renewed optimism about short-term economic recovery and long-term prospects for AI. Aggressive valuations opened the door to volatility, and the global IT outage pushed many sensitive investors toward the exit.
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Source Fool.com
