Please ensure Javascript is enabled for purposes of website accessibility

Why Alteryx Stock Slumped Another 13% Last Month

By Jeremy Bowman - Updated Apr 5, 2021 at 4:12PM

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

Shares of the data analytics provider continued to slide in March.

What happened

Shares of Alteryx (AYX 0.18%), the provider of data analytics software, continued to struggle last month as the company fell along with a number of other high-priced growth stocks at the beginning of the month and never recovered. There was little company-specific news on Alteryx during the month.

According to data from S&P Global Market Intelligence, the stock finished the month down 13%. 

AYX Chart

AYX data by YCharts.

So what

As you can see from the chart above, Alteryx's losses for the month came in just a few days at the beginning of the March. The stock fell 15% over the first week of March, continuing a slide in February when shares sold off following disappointing guidance for 2021 in its first-quarter earnings report. They also dipped later in the month after the company's newly hired chief revenue officer was forced to resign due to an inappropriate social media post.

A woman looking at chart on a computer monitor

Image source: Getty Images.

High-priced tech stocks fell across the board in the first week of March as the 10-year Treasury yield moved higher, raising investors' discount rates and therefore pressuring growth stocks since that makes their future earnings less valuable. Though Alteryx has struggled over most of the past year, the cloud stock was still caught up in the sell-off, as its shares are expensive according to traditional metrics, and investor sentiment seems to be moving away from cloud stocks.

Alteryx did recoup some of its losses on the last day of March after an analyst note from Citigroup signaled bullishness, and the following day Morgan Stanley initiated coverage with an equal-weight rating and a price target of $93, giving the stock some upside. Analyst Sanjit Singh acknowledged the opportunity that's in front of the company, but said there was still much work to be done.

Now what

Indeed, Alteryx faces a number of challenges after its revenue growth went from nearly doubling early in 2020 to flat at the end of the year. The company's on-premise business has proved to be a poor fit with the demands of the pandemic, and new CEO Mark Anderson has taken over a company in need of a turnaround, especially as competition is on the rise.

The data analytics stock should get some tailwinds from the reopening, but the company will need to execute for the stock to return to its former heights.

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
$55.66 (0.18%) $0.10

*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 05/22/2022.

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.