Why DigitalOcean Stock Tanked 9% Today

Shares of cloud computing company DigitalOcean Holdings (NYSE: DOCN) were down 9% today. It capped a horrific stretch for the small company. The stock was down over 13% on the week and has now been nearly halved from its all-time high reached just two months ago.

Image source: Getty Images.

There has been no specific news from DigitalOcean that's causing this sharp sell-off. Rather, we can blame the threat of rising interest rates. Last week, the Federal Reserve indicated it may hike interest rates faster than expected this year to try to beat back inflation. Since higher rates lower the present value of stocks (especially fast-growing ones like DigitalOcean), richly valued companies have been taking it on the chin. 

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Source Fool.com