CFLT - Down 71% in This Bear Market Can Confluent Stock Recover in 2023?
Shares of data storage and data streaming disruptor Confluent (NASDAQ: CFLT) have been some of the hardest hit of the past couple years' IPO stocks. Shares are down 71% since the bear market began in earnest at the beginning of 2022. But the tech stock sell-off actually started a couple of months earlier; since peaking on Nov. 5, 2021, Confluent shares have fallen almost 77%.
Confluent is like many of its high-growth, SaaS stock ilk that have fallen sharply. The sell-off started after a nearly two-year bull run following the 2020 coronavirus market crash, which saw many stocks reach extreme valuations. However, most didn't have the fundamentals to support those prices.
Confluent is part of the group that's been the hardest hit: companies that may be growing quickly, but are also burning cash. Over the past four quarters, Confluent has burned almost $170 million in operating cash while generating $537 million in sales. And that cash burn has been accelerating.
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Down 71% in This Bear Market, Can Confluent Stock Recover in 2023?