Shares of edge computing company Fastly (FSLY 8.67%), visual and search social media platform Pinterest (PINS 2.11%), and telehealth specialist Teladoc Health (TDOC 4.58%) all fell sharply on Wednesday. The three stocks were down about 7%, 9%, and 7%, respectively, as of 11:40 a.m. ET.
The pullback in the three companies' shares was likely primarily due to a tough morning in the market for many tech stocks -- particularly for growth tech stocks like these three companies.
While the S&P 500 index was flat at the time of this writing, the tech-heavy Nasdaq Composite was down about 0.5% on Wednesday morning, highlighting a challenging day for many tech stocks. But many growth tech stocks were down several percentage points or more.
The slide in stocks like Fastly, Pinterest, and Teladoc seems to be a continuation of a bearish attitude from the market toward companies like this in 2022. Many growth stocks have been slammed this year. Fastly, Pinterest, and Teladoc, for instance, have seen their stocks fall a total of 24%, 25%, and 18% year to date. Though the stocks started recovering some of their sharp year-to-date losses in recent trading days, skittishness on the Street toward some stocks like these seems to have returned on Wednesday. Many growth stocks, including these three, are still higher than their lowest lows at the worst point of the sell-off.
With earnings season underway, investors will get updates on all three of these businesses soon. Fastly is set to report its fourth-quarter results after market close on Feb. 16, Pinterest reports after market close on Thursday of this week, and Teladoc reports after market close on Feb. 22.