What happened
Shares of customer service software provider Zendesk (ZEN) fell sharply on Monday. The stock finished the trading day down about 11.9%.
The stock's decline was likely primarily due to an overall decline in the stock market that weighed heavily on tech stocks.
Image source: Zendesk.
So what
The tech-heavy Nasdaq Composite fell 2.7% on Monday, bringing its month-to-date pullback to 5.5%. This is much worse than the S&P 500's 1.8% decline during this same timeframe, showing how tech stocks have been hit particularly hard recently.
Until Monday, Zendesk was almost flat for the month, even as tech stocks were falling. This flat performance when the market was falling was likely supported by the company's recent strong earnings report, which saw Zendesk swing from a loss in the year-ago quarter to a profit on a non-GAAP basis.
Now what
To help keep a clear head amid this market volatility, investors may benefit from considering the recent performance of Zendesk's business. Zendesk announced third-quarter results on Oct. 30, featuring 38% year-over-year revenue growth. Importantly, management guided for free cash flow for the full year of 2018 to be between $28 million and $30 million.
