MILE - Why Shares of Metromile Are Falling Today
Shares of the digital car insurer Metromile (NASDAQ: MILE) were down more than 13% as of 11:35 a.m. EDT today for no obvious reason.
A few possibilities might be leading to the decline today. For one, it's a technology company, so it might be suffering from news this morning that the U.S. Consumer Price Index (CPI) rose 5% over the last year. Economists were only expecting a rise of 4.7%.
The CPI is a good indicator of inflation, which can hurt fast-growing tech stocks because it increases the cost of running a business, and also results in investors demanding higher returns from companies. But this may not be the reason, because the Nasdaq index, which includes a lot of tech stocks, was slightly higher today as of 11:35 a.m. EDT.
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Why Shares of Metromile Are Falling Today