CFLT - Why Shares of Confluent Fell 17.5% In July
Shares of cloud data-platform Confluent (NASDAQ: CFLT) fell 17.5% in July. It's simply a breather for the white hot IPO stock, though. It debuted in public trading in June at about $45 per share, valuing the company at well over $11 billion. This was a lofty amount, considering the company reported revenue of just $237 million (representing year-over-year growth of 58%) in 2020.
It isn't unusual for high-growth tech stocks to fall in the months immediately following a successful IPO. As for Confluent's business, the "data in motion" platform is doing just fine. Spun off from professional social network LinkedIn (now part of Microsoft ) in 2014, Confluent offers a service that allows businesses to "stream" data in real time. This unlocks all sorts of capabilities, from detection of cybersecurity threats to insights from customer data to creation of new services that work on and off of an organization's cloud.
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Why Shares of Confluent Fell 17.5% In July