Investor sentiment turned sour on cybersecurity stocks in April as Cloudflare (NYSE: NET) dropped 23.7%, Zscaler (NASDAQ: ZS) fell 22.9%, Okta (NASDAQ: OKTA) tumbled 20.5%, and (NASDAQ: CRWD) lost 12.5%, according to S&P Global Market Intelligence. Growing recession concerns weighed on growth stocks in general, and cybersecurity stocks took some damage following discouraging forward-looking commentary from multiple industry leaders.

Cybersecurity investors were already jittery coming into April after Zscaler's quarterly-earnings report in March. Despite beating Wall Street's expectations, the stock dropped significantly due to a weak outlook for sales and earnings. When fear lingers around growth stocks, it doesn't take much to send them tumbling.

CrowdStrike kicked off April with its analyst day in which company management discussed new product developments, strategic initiatives, and its outlook for the next few years. Wall Street left that presentation unimpressed with the endpoint-security leader's growth and profitability forecasts over the next three years. All four of these cybersecurity stocks dropped after CrowdStrike's analyst day, even though there wasn't any noteworthy news about the other three.

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Source Fool.com