Why Snowflake, DocuSign, and Okta Fell Hard Today (Again)
Shares of enterprise software companies Snowflake (NYSE: SNOW), DocuSign (NASDAQ: DOCU), and Okta (NASDAQ: OKTA) all fell sharply Friday, ending the session down 6.5%, 7.9%, and 7.8%, respectively.
As has frequently been the case for tech companies of late, the sagging stock prices had nothing to do with any company-specific news, and everything to do with fears about inflation, a rise in long-term yields, and perhaps forced selling on the part of funds being hit with margin calls.
Following the Wednesday release of the minutes of Federal Reserve's last meeting, stocks initially surged. But Friday's decline was a continuation of the momentum from Thursday's brutal sell-off, which came as investors further digested the news. While the market initially reacted favorably to Fed Chair Jay Powell's comments that the Fed wasn't actively considering 75 basis-point hikes to the federal funds rate, some investors may fear that such aggressive moves are needed. If the Fed's current path for interest rate increases proves insufficient to get inflation under control, that could necessitate more hikes later.
Source Fool.com
