Why Pinterest, Fastly, and Teladoc Stocks Fell Sharply on Wednesday

Motley Fool2022-02-03

Key Points

  • It's been a challenging start to 2022 for many growth stocks like Fastly, Pinterest, and Teladoc.
  • All three companies report earnings this month, with Pinterest's update coming first.

What happened

Shares of edge computing company Fastly, visual and search social media platform Pinterest, and telehealth specialist TeladocHealth all fell sharply on Wednesday. The three stocks were down about 7%, 9%, and 7%, respectively, as of 11:40 a.m. ET.

The pullback in the three companies' shares was likely primarily due to a tough morning in the market for many tech stocks -- particularly forgrowth tech stockslike these three companies.

So what

While the S&P 500index was flat at the time of this writing, the tech-heavy Nasdaq Compositewas down about 0.5% on Wednesday morning, highlighting a challenging day for many tech stocks. But many growth tech stocks were down several percentage points or more.

The slide in stocks like Fastly, Pinterest, and Teladoc seems to be a continuation of a bearish attitude from the market toward companies like this in 2022. Many growth stocks have been slammed this year. Fastly, Pinterest, and Teladoc, for instance, have seen their stocks fall a total of 24%, 25%, and 18% year to date. Though the stocks started recovering some of their sharp year-to-date losses in recent trading days, skittishness on the Street toward some stocks like these seems to have returned on Wednesday. Many growth stocks, including these three, are still higher than their lowest lows at the worst point of the sell-off.

Now what

With earnings season underway, investors will get updates on all three of these businesses soon. Fastly is set to report its fourth-quarter results after market close on Feb. 16, Pinterest reports after market close on Thursday of this week, and Teladoc reports after market close on Feb. 22.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Deonc
    2022-02-03
    Deonc
    They are distruptive companies, hold for long terms. please like and comment, if agree. 
  • Chris_CHRIS
    2022-02-03
    Chris_CHRIS
    Like pls thanks 
  • och
    2022-02-03
    och
    Like
  • kevinlaisq
    2022-02-03
    kevinlaisq
    Ok
  • sheenayam
    2022-02-03
    sheenayam
    Waiting for Fastly to get bullish... Hopefully soon..
  • V K
    2022-02-03
    V K
    Pls like tyvm[Happy] 
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