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Contrary to this board's group think, during last year's stock market pullback, the SaaS stocks did NOT hold up. In fact, they declined more than the broad market.

The SaaS stocks' top tick to bottom tick declines during last year's stock market pullback are presented below :

Adobe - down 27%

Alteryx - down 33%

Docusign - down 49%

Husbpot - down 33%

MongoDB - down 27%

Okta - down 44%

Salesforce - down 30%

ServiceNow - down 29%

Shopify - down 34%

Trade Desk - down 36%

Twilio - down 30%

Workday - down 26%

Zendesk - down 37%

ZScaler - down 37%

Zuora - down 60%

These large declines occurred during a garden variety bear-market which was not even accompanied by a business slowdown or economic recession.

Many have bounced back sharply because of the Federal Reserve changing its tune.

How do you think these stocks will fare during a business slowdown or economic recession when their revenue growth rates slow down or top-lines shrink?

Some food for thought...


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