Shares of CrowdStrike Holdings, Inc. (CRWD -0.68%), a cybersecurity company, tumbled again today on no company-specific news. Rather, the tech stock likely fell as U.S. Treasury yields rose today, which put pressure on growth stocks.
Crowdstrike's stock was down by 4.8% as of 3:46 p.m. ET.
Investors often flee high-growth stocks with loftier valuations when Treasury yields rise because it means a company's future profits will be worth less than they are right now. The 10-year Treasury yield was about 1.66% as of this writing, up from 1.52% at the end of last week.
Today's sell-off comes after CrowdStrike's stock fell about 4% yesterday. That drop appears to be a continuation of some of the volatility that the tech-company's stock experienced in the last two months of 2021.
CrowdStrike investors have been on a wild ride over the past year. The company's stock began plummeting in mid-November, and now its share price is down about 11% over the past 12 months.
The company's drop in November was likely the result of a Morgan Stanley analyst downgrading CrowdStrike's stock, and it's clear that some investors still believe the stock's valuation is too high.
Despite the recent drops, long-term investors may want to ride out some of this volatility and wait until they see the company's financial performance over the next several quarters instead of following the current trend of fleeing CrowdStrike's stock.