Why Roku, DraftKings, and Beyond Meat Fell Hard Today
While the Nasdaq was down mildly today, former pandemic-era highfliers Roku (NASDAQ: ROKU), DraftKings (NASDAQ: DKNG), and Beyond Meat (NASDAQ: BYND) were all down significantly, falling 7.6%, 8.4%, and 7.6%, respectively, as of 1:45 p.m. ET.
There wasn't much in the way of company-specific news today, but investors appear to be turning cautious once again on high-growth, profitless stocks that benefited in the early days of the pandemic. A key inflation report is also due out on Wednesday, and second-quarter earnings season will soon commence. Most indicators point to an adverse environment for consumer-oriented stocks like these. Meanwhile, the Fed will likely continue to raise rates this month, which could be a headwind for growth stock valuations.
While these stocks had already been hammered to start 2022, each actually has had a nice rally since mid-June. That's when the Federal Reserve decided to hike the federal funds rate by 75 basis points in order to stamp out inflation. However, that prompted a drop in long-term interest rates such as the 10-year Treasury yield, as well as commodity prices toward the end of the month.
Source Fool.com
