New Relic also down by 25%, crazy day for Silicon Valley.
Disclaimer: I have a position in NEWR and added today at the 21 level. This will certainly bounce back in the comings months or years. Will add if the irrationality continues.
You might be right who knows, but can't realy say the fear on this stock is irrational at the moment, imho
Their growth is tremendous and are on a path to profitability. I get it - when the market are getting banged around like it is, there are few safe places. I just think the baby is being thrown out with the bath water in a lot cases. I'm using this to average down a bit and hold.
And for New Relic the expectations are really high, could still turn out to be a great business story (and I also think it will) but not necessarily a good investment because so much of this future success is already embedded in the price.
And New Relic shuts down their Seattle office: http://www.geekwire.com/2016/new-relic-shuts-seattle-office-...
AppDynamics, their direct competitor, is a late stage VC Unicorn ($2 bio evaluation) and delays its IPO.
Dynatrace another rather old-school competitor (like CA), which was bought out of Compuware by Thomas Bravo (private investor), has been taken private.
New Relic depends on smb sales, AppDynamics and Dynatrace more on enterprise sales. New Relic has the easier to use product, AppDynamic and Dynatrace are better at enterprise bullshit bingo and show more "nested pages" with often less detailed data to hide that they have worse/lacking insight. They stopped innovating like 2 years ago.
All three companies have a lot of employees and burn through their capital. Doesn't look good.