Why Confluent Stock Is Sinking Today

Confluent (NASDAQ: CFLT) stock is seeing a big valuation pullback Friday. The company's share price was down 7.9% as of 2:30 p.m. ET, and had been down as much as 11% earlier in trading.

Confluent is moving lower today following a significant insider selling disclosure. The company submitted a filing to the Securities and Exchange Commission (SEC) revealing that co-founder and CEO Jay Kreps planned to sell a substantial amount of company stock.

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Confluent stock sinks as Kreps sells shares

In a filing with the SEC yesterday, Confluent disclosed that CEO Jay Kreps planned to sell 465,000 shares of company common stock. The value of the stock to be sold was put at roughly $14.97 million in the filing, and yesterday was listed as the approximate date on which the shares would be sold. Prior to the new stock sale, Kreps had sold 232,500 shares over the preceding three months.

While there are many reasons that an executive may move to sell company stock, stock sales by principal company leadership are often viewed as a bearish indicator by investors. On the heels of today's pullback, Confluent stock is now down roughly 4% across 2025's trading.

What's next for Confluent?

Confluent is guiding for sales to come in between $1.117 billion and $1.121 billion this year -- representing annual growth of approximately 16% at the midpoint of the target. The company also guided for non-GAAP (generally accepted accounting principles) adjusted earnings per share of roughly $0.35 -- suggesting growth of roughly 21%. Despite recent valuation volatility, Confluent's business looks poised for solid momentum this year -- and the company's recently announced partnership and software integration with Databricks could open up significant long-term growth opportunities.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Confluent. The Motley Fool has a disclosure policy.