WIX - Why Tech Stocks Popped on Thursday Afternoon
Tech stocks had a good day on Thursday as investors start to get more bullish on the industry's future. The Nasdaq Composite was up 0.9% at 2:20 p.m. ET, outpacing the Dow Jones Industrial Average and S&P 500 by a wide margin.
Shares of business-to-business software-as-a-service companies were some of the biggest winners. MongoDB (NASDAQ: MDB) jumped as much as 9%, Atlassian (NASDAQ: TEAM) was up 10.3% at its peak, Datadog (NASDAQ: DDOG) was up 10.2%, HubSpot (NYSE: HUBS) rose 6.6%, and Wix.com (NASDAQ: WIX) popped 5.4%. Shares of each stock have pulled back slightly from their morning peak, but are still up big on the day.
There's generally a "risk on" trade going on today, which is helping high-volatility stocks like these broadly. But there's some positive news in the industry as well. MongoDB reported earnings on Tuesday and revenue was up 47% in the quarter to $333.6 million, a sign that business customers are still increasing spending. But the company did lose $84.8 million, or $1.23 per share, so financials aren't where they need to be long term.
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Why Tech Stocks Popped on Thursday Afternoon