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Snowflake (NYSE: SNOW) and Twilio (NYSE:TWLO) led cloud software stocks lower on Tuesday as investors fretted about worsening economic conditions ahead of a key inflation report.
Snowflake (SNOW) led by Frank Slootman fell up 6% to $160.02, while Twilio (TWELVE) was also down more than 6% to $81 in mid-day trading.
Last week, investment firm BTIG downgraded Snowflake (SNOW), citing a downtick in recent field reviews and the fact that cloud hyperscalers started to slow in the second quarter.
On Monday, Twilio (TWLO) said it was hacked by an unknown group and that the investigation into the event is still ongoing.
Salesforce ( CRM ), Adobe ( ADBE ), Workday ( WDAY ) and ServiceNow ( NOW ) also declined Tuesday, led by a 4% decline in Marc Benioff-led Salesforce.
Separately on Tuesday, The Wall Street Journal reported that managers at Microsoft ( MSFT ) have asked their employees to curb costs, citing the current economic environment.
The drop comes ahead of a reading in the consumer price index for July. The CPI is expected to increase by 0.2%, while the core CPI, which excludes volatile food and energy prices, is expected to increase by 0.5%.
Last week, investment firm Stifel downgraded Twilio ( TWLO ) after the customer engagement software company issued weaker-than-expected third-quarter guidance.