Paycom's Stock Dives on Disappointing Revenue Forecast and Q3 Earnings

Paycom Software's stock plummeted by over a third after the company's weak fourth-quarter revenue forecast fell short of estimates. The Oklahoma City-based payroll processor's shares were down 36% in premarket trading, resulting in a potential market capitalization loss of over $5 billion. Paycom attributed the revenue shortfall to increased usage of its flagship product, Beti, which led to the elimination of certain billable items. Several brokerages have lowered their price targets on the stock, and competitors Ceridian HCM Holding and Automatic Data Processing also experienced stock declines.