The Motley Fool

The Darktrace share price plunges 30% in a month. What’s up?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Businessman looking at a red arrow crashing through the floor
Image source: Getty Images.

The FTSE 100 index is up 2.4% over the past month, and some of its constituent shares have soared in value. However, the Footsie’s worst performer over 30 days is the stock of Darktrace (LSE: DARK). As I write, the Darktrace share price stands at 592.84p, down 2.9% today. Furthermore, DARK shares have crashed by 28.7% over the past month.

The Darktrace share price crashes

When Anglo-American cyber-defence firm Darktrace floated on the London Stock Exchange on 30 April, it was valued at £1.7bn. But the Darktrace share price soared like a rocket from the float price of 250p. At its all-time high on 24 September, DARK hit an intra-day peak of 1,003p. In other words, this tech stock had quadrupled in value in less than five months. 

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Alas, Darktrace shareholders soon found out that financial gravity means what goes up can eventually come down. Since peaking in late September, the Darktrace share price has plunged, losing over 410p from its high. That’s a crash of more than two-fifths (-40.8%) in under two months. 

In hindsight, it may be that the Darktrace share price at IPO (initial public offering) was perhaps too low at 250p. Indeed, investors who bought at this price would have more than doubled their money, gaining 137.1% in under seven months. Perhaps equally likely is that Darktrace — with 2020 revenues of a mere $200m — was overvalued at £10+ a share. Looking ahead, this growth company might need several quarters of strong revenue growth to underpin its current market value of £4.1bn…

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.