AYX - SaaS Sell-Off Confirmed The Danger Of Today's Stock Market Bubble
On Friday, two of the leading high-growth software-as-a-service {SaaS} stocks – Alteryx (AYX) fell 28% and Datadog (DDOG) declined 15% due to not meeting Street expectations, on a day when the Nasdaq was only down 0.87%. The Q2 results for both companies actually were ahead of analysts’ previously-reduced consensus estimates, but the guidance disappointed. These stocks’ high valuations leave little margin for any disappointment. Even after Friday’s crash, Datadog’s Enterprise Value/LTM revenue is 45.1x, while that of Alteryx is at 17.3x. The issue for both companies was COVID-19 was slowing the