Stock Story -
What Happened:Shares of construction management software maker Procore (NYSE:PCOR) fell 26.4% in the morning session after the company reported second-quarter earnings results. Its revenue guidance for the next quarter missed, and its customer growth decelerated. We do note the company slightly lifted its full-year revenue outlook, but the market seems to be more focused on the short term. Overall, this was a mediocre quarter for Procore Technologies (NYSE:PCOR).
Following the results, Wall Street analysts downgraded the stock's rating. DA Davidson downgraded the stock from Buy to Neutral, adding that " the company's Q2 print signaled significant company-wide operating model changes to come."
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Procore? Find out by reading the original article on StockStory, it's free.
What is the market telling us:Procore's shares are quite volatile and over the last year have had 9 moves greater than 5%. But moves this big are very rare even for Procore and that is indicating to us that this news had a significant impact on the market's perception of the business.
Procore is down 23.3% since the beginning of the year, and at $51.97 per share it is trading 36.9% below its 52-week high of $82.36 from March 2024. Investors who bought $1,000 worth of Procore's shares at the IPO in May 2021 would now be looking at an investment worth $590.57.
![Why Procore (PCOR) Shares Are Trading Lower Today](https://d68-invdn-com.investing.com/content/pic3a015b5ebc7c71f1b3cb939345d8a811.jpeg)