MLNK - Why MeridianLink Stock Was Down on Wednesday
2023-08-02 13:12:13 ET
MeridianLink (NYSE: MLNK) stock fell hard on Wednesday, declining 26% by 1 p.m ET, compared to a 1.3% drop in the S&P 500 . The dive wasn't enough to put shareholders behind the market's returns for the year, though. The stock remains higher by 20% in 2023 compared to the 18% rally in the S&P 500.
Wednesday's drop was amplified by the wider market slump that affected most stocks. But the bigger factor was MeridianLink's Q2 earnings update that contained signs of mounting pressures on the business.
Sales grew by just 3% in the Q2 period that ran through late June, marking a slowdown from the prior quarter's 6% increase. The data services specialist, which serves mostly financial institutions, noted strong demand for its lending software solutions. In a press release, CEO Nicolaas Vlok also highlighted "solid bookings momentum and successful services delivery," as bright spots for the period.
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Why MeridianLink Stock Was Down on Wednesday