The market generally makes sense but there are some times when a stock can move in either direction without any solid reason and the situation seems to be the same with regards to the Sumo Logic (NASDAQ:SUMO) stock. The stock has had a rough start to the day and has already tanked by as much as 10%.
While the stock is getting beaten down, it is also necessary to point out that there are no actual reasons behind the selloff at all. The selloff came about after the company announced its financial results for the second fiscal quarter. While it seems that investors might have been disappointed, Sumo Logic actually managed to deliver a performance that actually beat expectations.
While the company managed to beat expectations in the second quarter, its projections for the third quarter were not in line with investors’ expectations. However, in this regard, it should be noted that this is something that is par for the course of Sumo Logic and not particularly surprising.
The company is known for setting the expectation low and then surpassing it when the time comes. Despite the selloff in the stock this morning, it is important for investors to keep in mind that it remains a technology company that has a wide use case. In addition to that, it is also available at an attractive valuation at this point and experts believe that it is a stock that investors could consider adding to their portfolios in these uncertain times.