What happened
Shares of Freshworks (FRSH 0.22%) are making last Friday's 18% plunge on a poorly received earnings report just a bad memory. Shares of the software-as-a-service (SaaS) stock were rebounding 12.6% in morning trading Monday, as of 11:23 a.m. ET, as investors undoubtedly see last week's sell-off as overdone.
After weeks of escalating concern that Russia would invade Ukraine gave the markets a case of the jitters, sending the benchmark indexes lower last week, the saber rattling seems to be easing after reports indicate diplomatic solutions could be pursued instead.
Image source: Getty Images.
So what
Releasing earnings into a market already on high alert of what an invasion would portend for global economies wasn't the best timing for Freshworks, even though its report really wasn't all that bad. Sales were up and its losses were in line with expectations, albeit much wider than they had been a year ago.
Yet the stock market has been generally bearish on tech stocks as it rotates away from previous highfliers into more consumer staples amid worries about the economy. A dose of global conflict gave investors an even worse case of the jitters and Freshworks stock seems to be bearing a good portion of the blowback.
Now what
Shares are down 30% in 2022 and have lost more than 60% since from their October highs following the company's initial public offering.
Although there does look like there are more losses in Freshworks' immediate future, the bottom also doesn't appear to be falling out of the business. Instead, the market is taking a fresh look at the SaaS stock and saying the rout has been too much.
