Investors have flocked to tech stocks during the coronavirus pandemic, as lockdowns and social distancing have forced people to spend more time at home. But at the beginning of September, some investors began selling technology stocks to cash in on some of the gains they made over the past few months. Cloudera's steep price drop at the beginning of the month appears to follow that same pattern.
Unfortunately for Cloudera investors, the stock didn't bounce back later in the month. Even after the company reported its second-quarter fiscal 2021 results earlier in the month, which outpaced some of Wall Street's expectations, Cloudera's stock still ended the month down significantly.
The company reported adjusted earnings per share of $0.10 in the quarter, which outpaced analysts' consensus estimate of $0.07. Additionally, sales increased by 9% to $214.3 million.
But the wave of investors fleeing tech stocks last month was too much for Cloudera's stock, despite the company's second-quarter results.
The broader stock market continues to be volatile as investors digest information about the pandemic, the health of President Trump, and the U.S. recession. All of which means that Cloudera investors should expect some ongoing price swings from the stock in the coming months.