Why Software All-Stars CrowdStrike, MongoDB, and Cloudflare All Plunged Today
Shares of software leaders CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Cloudflare (NYSE: NET) were all down big in Tuesday trading, with each falling over 5% before recovering to a 3.4%, 2.5%, and 2.3% decline, respectively, as of 1:45 p.m. ET.There wasn't much in the way of company-specific news today, aside from MongoDB making an small $220 million acquisition yesterday. Therefore, the across-the-board declines of even these high-quality software stocks can likely be attributed to some negative macroeconomic news, such as today's consumer sentiment survey.On Tuesday morning, The Conference Board released its February Consumer Confidence survey with some worrying results. The overall index plunged a whopping 7 points to 98.3, the largest drop since August 2021. The Expectations Index, a component of the overall index that tracks the short-term economic outlook for business and labor conditions, fell 9.3 percentage points to 72.9. Of note, a reading below 80 on the Expectations Index usually signals a recession ahead.Continue reading
Shares of software leaders CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Cloudflare (NYSE: NET) were all down big in Tuesday trading, with each falling over 5% before recovering to a 3.4%, 2.5%, and 2.3% decline, respectively, as of 1:45 p.m. ET.
There wasn't much in the way of company-specific news today, aside from MongoDB making an small $220 million acquisition yesterday. Therefore, the across-the-board declines of even these high-quality software stocks can likely be attributed to some negative macroeconomic news, such as today's consumer sentiment survey.
On Tuesday morning, The Conference Board released its February Consumer Confidence survey with some worrying results. The overall index plunged a whopping 7 points to 98.3, the largest drop since August 2021. The Expectations Index, a component of the overall index that tracks the short-term economic outlook for business and labor conditions, fell 9.3 percentage points to 72.9. Of note, a reading below 80 on the Expectations Index usually signals a recession ahead.
