Why Shopify, Upstart, and DraftKings Fell Today
Growth darlings Shopify (NYSE: SHOP), Upstart Holdings (NASDAQ: UPST), and DraftKings (NASDAQ: DKNG) were each down big today, falling 11.9%, 6.9%, and 10.8%, respectively, as of 3:35 p.m. ET.
There wasn't any material news out of these companies today; however, after growth stocks rallied yesterday, they fell by just as much today when May jobs numbers came in stronger than expected. Moreover, investors may have been spooked by Tesla CEO Elon Musk's comment in a company email that he feels "super bad" about the economy right now.
It's a pretty bad combination for these three stocks, which are each consumer-facing growth stocks. An inflationary environment would cap growth stock valuations, while a bad economy for consumer spending could also affect their top and bottom lines.
Source Fool.com
