Please ensure Javascript is enabled for purposes of website accessibility

Why Alteryx Stock Dropped Today

By Steve Symington - Updated Dec 11, 2019 at 4:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

No, it wasn't Wednesday's investor presentation.

What happened

Shares of data-analytics platform specialist Alteryx (AYX 4.89%) were down 10% as of 3:30 p.m. EST Wednesday despite a lack of company-specific news.

That said, Alteryx management did hold a previously scheduled presentation at the Raymond James Technology Investors Conference today. But the stock's decline began well before that presentation kicked off. And even then, the event's attendees reportedly said management's comments included no negative surprises that might have spurred such a drop.

So what

It appears Alteryx is being dragged down as part of a broader pullback in cloud-computing and SaaS names today. And it certainly didn't help that the stock was up a whopping 84% year to date leading into yesterday's close, including a 24% gain last month as the market celebrated Alteryx's impressive third-quarter 2019 results.

Now what

This kind of volatility is par for the course for high-flying, fast-growing tech stocks like Alteryx. I think investors would do well to focus first on the health of its underlying business, as Alteryx works to capture as large a piece as possible of what management describes as a $28 billion total addressable market -- and that's just for its flagship Alteryx Designer product alone.

Considering that Alteryx's growth story appears to remain firmly intact -- and given its modest $6.5 billion market cap as of this writing -- I think these kinds of no-news moves might prove to be compelling opportunities for long-term investors to open or add to their positions.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alteryx Stock Quote
$57.69 (4.89%) $2.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.