Very Rough day today for SAAS stocks. Markets are all up, but my SaaS stocks are getting hit hard. Is it a sector rotation? Is it a recession? Time will tell. Quarterly releases were very strong, exceptional even. The stocks have run a lot this year and every stock and industry has to breathe eventually. Momo and Robo traders today are piling on today and driving them down further than they probably should. Scary day and the reason I seldom margin trade (borrow money to trade stocks) or over leverage with too many options. A day like today can cause a leveraged portfolio to be cut in half or more if you are over leveraged and the worst case is that the broker calls your shares back at the bottom and you have to sell at the bottom to pay the borrowed funds back. This has happened to a friend who has invested for years and was one of the scariest investing situations I’ve observed. Invest wisely and long term. I closed a few small options trades just to be safe, but otherwise sitting tight. Tomorrow is ZS earnings. I will tread cautiously but continue to try to focus on the company fundamentals and growth. Hard day to digest…
The Datadog IPO: One Of The Best IPOs In Years $DDOG
https://seekingalpha.com/article/4290637
From a newsletter I subscribe published today that perhaps expresses my thoughts more eloquently and concisely than I did above:
“Today’s carnage in high-growth software stocks is affording investors some opportunities that should be exploited if possible. The thought process behind the trend since the end of July is really upside down. While it is always unpleasant and stressful to go through these kinds of periods-and frustrating as all get-out when company’s beat and raise and see their shares go into reverse, this has been a recurring theme in all the years I have dealt with these kinds of names.”
Is he right? Who knows? Crazy day! One for the record books for me 🤨
User question: Datadog looks like an interesting IPO. I could not find a proposed date for the offering, do you know if one has been set?
Victor: Not yet
The Datadog IPO: One Of The Best IPOs In Years $DDOG
https://seekingalpha.com/article/4290637
They will price next week on 9/17 between $19-22 share. Will be interesting with the current SaaS slump and macro environment to see when they go or if they delay it at all??
User question: What does the pricing mean? That doesn’t mean they will be publicly available for sale on 9/17, right?
Victor: Often they go the next day or within a couple days…pricing is one of the last decisions. Have not searched for any later news yet.
https://seekingalpha.com/pr/17637119?source=ansh
Tomorrow. Priced at $27. Wow! Should trade above $30…
