Is PagerDuty Stock Built to Withstand More Downside?
PagerDuty (PD) stock is down 23.3% in a day. The recent slide reflects renewed concerns around PagerDuty’s trimmed FY26 outlook and seat-based license reductions, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story? [cite:1, 2, 3, 2_concise_search_2, 5_concise_search_1]
Before judging its downturn reslience, let’s look at where PagerDuty stands today.
- Size: PagerDuty is a $1.1 Bil company with $484 Mil in revenue currently trading at $11.64.
- Fundamentals: Last 12 month revenue growth of 8.2% and operating margin of -5.9%.
- Liquidity: Has Debt to Equity ratio of 0.38 and Cash to Assets ratio of 0.64
- Valuation: PagerDuty stock is currently trading at P/E multiple of -87.8 and P/EBIT multiple of -175.4
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell PD Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PD stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PD stock falls another 20-30% to $8 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- PD stock fell 65.4% from a high of $56.58 on 12 February 2021 to $19.58 on 9 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $34.98 on 2 April 2023 , and currently trades at $11.64
| PD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -65.4% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- PD stock fell 49.3% from a high of $25.38 on 22 January 2020 to $12.87 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 May 2020
| PD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.3% | -33.9% |
| Time to Full Recovery | 60 days | 148 days |
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