Shares of subscription-management platform Zuora (ZUO 7.32%) took a hit on Wednesday, declining as much as 11%. By the time the market closed, however, the stock was down 9.6%.
The stock's decline was likely driven by an overall sell-off in the market on Wednesday. The sell-off hit growth stocks like Zuora particularly hard.
The S&P 500 fell 4.9% on Wednesday, with many growth companies seeing sharper declines. It's not particularly surprising, therefore, to see Zuora's stock down 9.6%.
Shares could also have been negatively impacted by a lowered price target for the stock by one analyst. Jeffries analyst Brent Thill lowered his 12-month price target on the stock from $22 to $17 but kept a buy rating on the stock.
Investors may want to keep an eye on Zuora tomorrow. The company reports its fourth-quarter results after market close on Thursday.
For the company's fourth quarter, management guided for revenue between $71.0 million and $72.5 million and a non-GAAP loss per share between $0.11 and $0.09.