High-growth stocks have been strong performers over much of the past year. Yet investors seem increasingly nervous about whether they'll be able to sustain their past growth rates. It's partially because of those concerns that the stock market overall suffered losses on Friday. As of 1:30 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 134 points to 34,951. The S&P 500 (SNPINDEX: ^GSPC) dropped 21 points to 4,398, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 95 points to 14,683.
Big-name stocks were among the decliners on Friday, but a couple of smaller high-growth tech companies stood out for outsized drops. Both Upwork (NASDAQ: UPWK) and Zendesk (NYSE: ZEN) suffered double-digit percentage losses on Friday afternoon, and that has some investors wondering whether a broader correction or bear market for high-growth stocks could be in the cards. Below, we'll look at what sent these two companies lower.
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Are High-Growth Stocks in Danger of Big Declines?