Shares of Impinj (NASDAQ:PI) closed Monday's trading session 10.5% lower. The provider of RAIN RFID tags and systems had no news of its own today, but the stock was swept up in a larger market panic. The S&P 500 index fell 1% on Monday, and the tech-heavy Nasdaq Composite index dropped 2.6% lower.
Impinj was more vulnerable to this correction than most stocks because it had been crushing the market recently. Even after Monday's haircut, Impinj's shares have gained 117% in 52 weeks and 84% in the last six months alone. Triggered by a couple of massive drops in the tech sector that had some connection to actual business results, the negative market action spread across most sectors and stock types with the notable exception of ultra-safe investments focused on dividends and consumer staples.
Keep in mind that Impinj fell after reporting earnings two weeks ago, even though the company crushed Wall Street's estimates across the board. The RFID business is healthy, but the market may have gotten ahead of itself as Impinj posted enormous gains in 2020. Today, we are watching Impinj investors trying to find solid footing for the stock's valuation just like they are doing with other high-growth investments at the moment. This stock will probably stay volatile for the foreseeable future.