Growth names trade on expectations, so most of their value sits far in the future. That makes them acutely sensitive to interest rates and to any change in the growth rate, since a small change in assumed growth moves a distant cash flow a long way.
Practically, growth stocks show high pe-ratio multiples, wide earnings reactions, and long trends in both directions. Guidance matters more than the quarter just reported.
Example: a company growing 35% a year trades at 14 times sales. Growth slows to 20% and the multiple compresses to 7 times sales. The stock halves even though revenue still rose.
Related: value-stock, pe-ratio, guidance, cyclical-stock