Shares of Appian Corporation (NASDAQ:APPN), a provider of cloud-based, low-code software, tumbled today, likely because 10-year Treasury yields are rebounding.
The tech stock was down by 12.2% as of 3:59 p.m. EST.
While there wasn't any company-specific news that caused Appian's stock to fall today, inventors were likely responding to a bump in Treasury yields. The increase of the yields has some investors moving away from growth sectors in the market.
Additionally, technology stocks have been some of the biggest winners over the past year, but rising yields could end up making it more expensive for growth companies like Appian to borrow money.
Appian's stock has rallied over the past 12 months, surging 241%. But the company's share price took a hit last month after Appian's management said that its loss per share for the full-year 2021 would be between $0.64 and $0.60, which is a bigger loss than the $0.43 per share that Wall Street was estimating for the year.
With Appian's stock falling last month and Treasury yields rising right now, some Appian shareholders may be inclined to think that the company's impressive returns are coming to an end. But investors should focus on the company's underlying business and its long-term potential, not short-term share-price drops.