- The danger for expensive growth stocks is always an earnings miss, especially when accompanied by a considerable guidance reduction.
- This is exactly what happened to Ellie Mae, and the recovery from this won’t be easy or fast.
- One positive factoid, seats are still increasing, at least part of the underlying growth mechanics are still there.
Source: Ellie Mae’s Quarterly Miss, An Inflection Point? – Ellie Mae, Inc. (NYSEMKT:ELLI) | Seeking Alpha