Why Snowflake, Appian, and Twilio Plunged Today (Again)
Shares of enterprise software darlings Snowflake (NYSE: SNOW), Appian (NASDAQ: APPN), and Twilio (NYSE: TWLO) plunged on Friday, with the stocks down 8.1%, 8.2%, and 5.3%, respectively, as of 3:50 p.m. ET.
There wasn't any material news out of these companies, which have each reported earnings and attended industry conferences in recent weeks. Therefore, the synchronous declines likely have to do with macroeconomic factors, or perhaps ripples from other companies in the SaaS sector.
Over the past two days, there were releases of economic data that may be playing a part in the cloud software industry's declines. Yesterday, the Bureau of Labor Statistics released February inflation data that showed a whopping 7.9% year-over-year increase, which was even bigger than expected. With inflation high, some anticipate the Federal Reserve will aggressively hike interest rates, and higher interest rates tend to depress the value of future earnings.
Source Fool.com
