The Nasdaq Is Falling Hard Friday. Can Growth Stocks Recover?
The stock market has been on pins and needles throughout 2022, as the macroeconomic and geopolitical situation has steadily worsened. Friday morning's report on consumer prices only added fuel to the fire, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) took the brunt of the resulting hit in the stock market. As of 11:45 a.m. ET, the Nasdaq was down 3.5%, flirting with its lowest level since late 2020.
Losses among some of the key growth stocks that led the Nasdaq's charge higher from early 2020 to late 2021 are hurting investor confidence in the market overall. Two more Nasdaq stocks, DocuSign (NASDAQ: DOCU) and Stitch Fix (NASDAQ: SFIX), reported earnings results that weren't able to reassure shareholders about their longer-term prospects. That's leading some investors to wonder whether growth stocks more broadly will ever be able to recover from their recent declines. Below, we'll look at the two earnings reports from DocuSign and Stitch Fix and then try to draw some conclusions about growth stocks in general.
Shares of DocuSign fell 25% on Friday morning, in the wake of its release of its fiscal first-quarter results for the period ending April 30. The electronic document specialist tried to accentuate the positives of its business, but investors were looking for much more substantial growth and were therefore disappointed by the reality of the current industry environment.
Source Fool.com
