Why Elastic Stock Tanked 15% Today
Shares of enterprise search, cloud observability, and security outfit Elastic (NYSE: ESTC) fell 15% today. The business reported a fantastic second quarter for its 2022 fiscal year (the three months ended Oct. 31), but such is life for investors in high-growth technology names. The bar was set high for Elastic, and the earnings beat-and-raise was punished anyway.
Elastic has lost 23% of its value in the last week, dragged down with the rest of the market on omicron variant fears. Shares now trade for 13 times current full-year expected sales after the sharp decline in recent days.
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Source Fool.com