Why Domo (DOMO) Shares Are Falling Today

Kayode Omotosho /
2023/08/25 11:52 am EDT

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.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Domo? Access our full analysis report here, it's free.

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.

Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.