Feb. 20 at 2:21 PM
$DAVA drop wasn’t just about guidance — it was a structure reset.
Yes, revenue still down y/y and margins compressed. Guidance didn’t scream “reacceleration.” That’s what started the selloff.
But the real accelerant? Schwab moved maintenance to 500%. That effectively kills margin and forces leveraged holders out.
Yesterday looked like this:
• Headline beat = gap buyers
• Reality of guidance = unwind
• Margin spike = forced liquidation
• Volume flush = weak hands cleared
Once leverage is drained, supply often dries up. What’s left are cash holders and shorts.
Bull case from here:
• Expectations reset low
• Sequential stabilization already visible
• Margins can mean revert as cost discipline kicks in
• Any slight improvement next quarter flips the narrative hard
Broker panic + volume flush often marks exhaustion, not the beginning.
Not saying straight up from here, but structurally this looks a lot more like a washout than a fresh breakdown.
That sucked, but still long term 👉🏻
