The Software as a Service sell-off ended last week, except for two firms.
Monday (MNDY) extended its yearly downtrend after it posted quarterly results. MNDY stock lost ~ 21% when the supplier of collaborative software earned $1.04 a share (non-GAAP). That is down by around 3% Y/Y, despite revenue rising by 25% to $333.9 million. It oulook failed to meet consensus.
Monday has $1.7 billion in cash and no debt. Markets, however, are worried that AI will take its core business.
Workday (WDAY) closed near a 52-week low after announcing its CEO would step down. On Feb. 4, the firm posted quarterly results. It also said it would cut around 2% of its workforce.
Kyndryl (KD), a spin-off from IBM (IBM), lost 54.9% of its value on Monday. The firm is delaying its regulatory 10-Q filing. This is pending an accounting review. Additionally, the general council, the senior vice president, and the CFO are all leaving the company.
In the drug sector, Hims & Hers (HIMS) extended its decline by losing another 16% yesterday. Novo Nordisk (NVO) is suing the firm for patent infringement linked to the obesity drug. Hims responded by calling the lawsuit a blatant attack.
HIMS short-sellers will likely build their position. That would increase their trading profits if the stock price decline accelerates.
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