Sub-sector stock market corrections continued in three ways. Investors who looked only at the S&P 500 (IVV) and Nasdaq (QQQ) will miss those declines.
In the credit market, Blue Owl Capital (OWL) halted the redemption in one of its funds. That stoked fears in the sector. OWL stock attracted a short interest of 11.8%. Shares have a forward yield of 8.5%.
Apollo Management (APO) lost 8.6% on February 27 after credit conditions for software stocks worsened. Its affiliated firm, MidCap Financial (MFIC), which dropped by 8%, cut its quarterly dividend. It reported a $45.3 million loss in the last quarter.
United Airlines (UAL) dropped by 8.7% to close at $106.30. The chart indicated a bearish “multiple top” at around $119. Markets correctly anticipated that the U.S. and Israel would strike Iran over the weekend. That would disrupt airline travel to the Middle East.
In the cybersecurity sector, Zscaler (ZS) fell by 12.2% after posting strong second-quarter results. Revenue of $815.8 million is up by 25.9% Y/Y. Annual recurring revenue of $3.36 billion is up by 25% Y/Y.
Zscaler did not experience much change in the competitive dynamics for a few quarters. It continued to win large deals worth a million dollars or more. ARR growth will accelerate. The firm will benefit from customers signing up for its Zero Trust workload solutions.
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