This market is so dramatic it’s actually hilarious. You’re telling me $NOW, a company used by over 85% of Fortune 500 businesses, just reported 20.5% YoY revenue growth, raised its full-year subscription revenue outlook, and fell almost 30%!? That’s wild. $GOOGL is getting punished too, despite some incredible growth in its cloud business. Now, I understand there are reasons. Earnings misses, slowing growth expectations, AI disruption fears, interest rates, and valuations that leave very little room for disappointment. But it’s fascinating how we’ve reached a point where a company can deliver 20-100%+ growth and still lose a quarter of its market value almost overnight. It’s almost as if the market isn’t asking whether a company is performing well anymore. It’s asking whether it’s performing beyond what we would even consider an expection. At what point does this become an overreaction rather than a rational repricing?
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4 Comments
Nate
@hoodnate · 3d
that last question stuck with me. good growth getting punished is hard to make sense of
Scott S@scottsinvesting · 3d
If $NOW was trading @ 20x earnings instead of 100x, it wouldn't have fallen nearly this much IMO and maybe not at all. Higher valuations need justification by beats & raises on earnings day, not slight misses. Just my opinion and FWIW, I'm a NOW shareholder.
Dividendmoney @compoundculture · 3d
The time to buy is NOW
Gusta
@gusta · 2d
And it just gotten worse… are we ready?
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