Why CrowdStrike, MongoDB, and HubSpot Were Plunging Today
Shares of cybersecurity firm CrowdStrike (NASDAQ: CRWD), database disruptor MongoDB (NASDAQ: MDB), and customer management and online marketing platform HubSpot (NYSE: HUBS) were down big today. As of 2:30 p.m. ET, these stocks were off 8.4%, 10.2%, and 10.4%, respectively.
There wasn't much in the way of company-specific news today; however, last week's inflation reading was enough to spur a big sell-off last Friday and today. While these stocks are still best-in-class and are executing quite well, investors should keep in mind they are also highly valued. That's why they're selling off so much in this market regime change to higher interest rates.
Last week, the May Consumer Price Index (CPI) figures came in hotter than expected, even though the expected numbers were already elevated. Unfortunately, while investors had hoped the March inflation numbers had reached "peak" inflation, that was apparently not the case. More concerning was the "core" CPI, which strips out food and energy prices that were known to be high. That year-over-year figure was 6%, higher than the expected 5.9% figure.
Source Fool.com
