Confluent Stock Drops 27% in After-Hours Trading: Here's Why
Confluent Inc. (NASDAQ:CFLT) stock value plummeted by 27.20% in after-hours trading on Thursday.
Check out how CLFT stock is trading here.
What Happened: Confluent, a California-based data streaming platform, has announced a $200 million investment aimed at expanding its global partner ecosystem. This investment is expected to enable partners to tap into the burgeoning $100 billion market opportunity driven by the increasing demand for data streaming platforms.
Kamal Brar, Senior Vice President, Worldwide Independent Software Vendor (ISV) and Asia-Pacific (APAC) at Confluent, said, "The opportunity ahead is massive, and we believe it will be defined by those who can move and build together.”
According to Benzinga Pro data, CFLT stock continued to drop to $19.22 during the after-hours trading session on Wednesday, following a 2.11% decline to close at $26.40 during the regular session.
Why It Matters: The drop in Confluent’s stock value comes on the heels of a significant investment announcement and second-quarter financial report. While Confluent posted strong growth in subscription revenue of $271 million, a 21% increase from last year and cloud revenue of $151 million, up 28%, and continued to improve margins and cash flow, the steep decline in stock price suggests investors’ concern regarding modest third-quarter outlook — which guided subscription revenue of $281–$282 million and earnings per share of $0.09–$0.10.
Despite the drop in stock value, Confluent’s CEO and Co-Founder, Ethan Chan, emphasized the importance of the company’s technology and expertise in providing a high-performance data backbone for its partners.
Confluent’s stock value change also coincided with a series of fluctuations in the IT sector, with several IT stocks experiencing significant shifts in the after-hours trading on the same day.
Benzinga's Edge Stock Rankings indicate Confluent stock has a positive trend across all time frames. Here is how the stock fares on other parameters.
Photo Courtesy: T. Schneider on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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