WS #16845
Investors are punishing growth stocks that fail to provide clear forward visibility. Datadog fell 18% and Doximity dropped 38% after issuing weak fourth-quarter and full-year guidance, respectively. This 'guidance is king' dynamic is overriding any positive current-quarter beats, signaling a risk-off environment for high-multiple software and media names lacking near-term catalysts.
Earnings Guidance Misses
Investors are punishing growth stocks that fail to provide clear forward visibility. Datadog fell 18% and Doximity dropped 38% after issuing weak fourth-quarter and full-year guidance, respectively. This 'guidance is king' dynamic is overriding any positive current-quarter beats, signaling a risk-off environment for high-multiple software and media names lacking near-term catalysts.