Stocks Tumble for Several Major Companies in Midday Trading
Several major companies saw their stock prices plunge in midday trading, making headlines for disappointing financial reports and analyst downgrades.
Groupon shares took a nosedive, plunging 39.5% after the online marketplace company posted third-quarter revenue and global gross billings that fell short of expectations. The company also approved an $80 million rights offering to shareholders.
Wynn Resorts also experienced a significant drop, with shares falling 7.3% as analysts focused on EBDITAR, which includes restructuring related to its operations in Macao.
UK-based drink manufacturer Diageo also saw a steep decline, with shares sliding 13.7% after the company forecasted a challenging environment ahead, expecting growth to slow in the first half of the fiscal year due to softness in Latin America and the Caribbean.
Illumina, a biotechnology company, faced a 13.6% drop in its stock price after it slashed its adjusted earnings guidance for the full year and reported lower-than-expected revenue.
Clean energy company Plug Power also took a hit, with shares tumbling more than 34% and reaching a new 52-week low after third-quarter earnings and revenue missed analysts’ estimates.
Other companies that saw significant drops in their stock prices include TKO Group, Treace Medical Concepts, The Trade Desk, Freyr Battery, Hawaiian Electric, and Synaptics.
Despite the market turmoil, there were a few bright spots, with medical product maker Hologic popping 5.6% following a strong fiscal fourth-quarter report, and biotechnology company Vera Therapeutics climbing 4% after receiving an upgrade to buy from hold by Jefferies.
Overall, it was a tumultuous midday trading session for several companies, with some facing significant challenges while others managed to beat expectations. Analysts and investors will be closely monitoring these companies in the days ahead.