Why Datadog, HubSpot, and MongoDB Fell Hard Today
Shares of high-flying enterprise software-as-a-service (SaaS) stocks Datadog (NASDAQ: DDOG), HubSpot (NYSE: HUBS), and MongoDB (NASDAQ: MDB) were falling hard today, down 5.5%, 5.7%, and 4.5%, respectively, as of 3:52 p.m. ET.
There wasn't any material news out of these three companies today. Likely, the market is quite nervous about tomorrow's Federal Reserve meeting and commentary from Chair Jay Powell. If Powell's commentary is more hawkish than anticipated, meaning that investors fear worse inflation and even more aggressive rate hikes in the future, it could hurt valuations of growth stocks, which have most of their profitability well out in the future.
Make no mistake, today's sell-off has nothing to do with the performance of these companies, which have been doing quite well. Datadog has established itself as a go-to solution for application observability, or software that monitors the health and security of a company's important applications. As a cloud-first solution, Datadog looks to benefit from the hyper-growth of cloud software. All of the big three cloud computing infrastructure companies reported solid cloud growth last quarter, which bodes well for Datadog. Datadog grew revenue a whopping 83.7% last quarter.
Source Fool.com
