What Happened:
Shares of data visualisation and business intelligence company Domo (NASDAQ:DOMO) fell 7.68% in the morning session after the company reported second quarter results in line with expectations. However, it lowered its full-year revenue guidance, missing analysts' estimates. In addition, revenue guidance for the next quarter came in below consensus estimates, and the company continued to burn cash. Overall, this was a weak quarter for Domo, and the market is punishing the stock for a slower growth outlook.
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What is the market telling us:
Domo's shares are very volatile and over the last year have had 60 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Domo is down 30.8% since the beginning of the year, and at $9.70 per share it is trading 66.2% below its 52-week high of $28.67 from August 2022. Investors who bought $1,000 worth of Domo's shares five years ago would now be looking at an investment worth $471.99.
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