NET - Here's Why Cloudflare Elastic and Fiverr Plunged in December
Shares of high-flying growth stocks ran into a marketwide correction in December 2021, according to data from S&P Global Market Intelligence . For example, freelance services specialist Fiverr International (NYSE: FVRR) took a 19.7% haircut last month, while data search company Elastic (NYSE: ESTC) saw a 20.8% price cut. Web security and infrastructure expert Cloudflare (NYSE: NET) dropped even further, recording a December decline of 30.1%.
These price drops were part of a larger trend stretching back to mid-November and continuing into January. As a result, all of the stocks mentioned above have lost more than 40% of their value since Nov. 16.
Elastic stands apart in this group as the only company that had significant news to report in December. Share prices fell hard on Dec. 1 as the company reported beat-and-raise results for the second quarter of fiscal year 2022. Monness Crespi analyst Brian White said what you're probably thinking about that market reaction when he called the price cut "silly" and reiterated his buy rating on the stock. Even that move was soon forgotten as the stock reverted to the same general trajectory as the other high-growth tech stocks in this study.
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Here's Why Cloudflare, Elastic, and Fiverr Plunged in December