Why NIO, Akcea Therapeutics, and Overstock.com Slumped Today
Monday was an up-and-down day on Wall Street, with indexes ultimately closing mixed. Gains in some major benchmarks were small as fears about a recession in Europe held stocks back early, but U.S. investors have higher hopes for the domestic economy to escape the same fate. Even so, some companies had to deal with challenges that sent their share prices lower. NIO (NYSE: NIO), Akcea Therapeutics (NASDAQ: AKCA), and Overstock.com (NASDAQ: OSTK) were among the worst performers. Here's why they did so poorly.
Shares of NIO fell 11% as investors got ready to get their latest reading on how the Chinese electric vehicle specialist's business is doing. Most auto industry watchers agree that China has huge potential to become a key player in producing cars and trucks that run on electricity, given the massive pollution problems facing the emerging economic power. NIO has a clear head start in helping to provide those solutions for the Chinese market, but a combination of factors including lower subsidies and poor quarterly results has hurt the automaker. Investors might get some reassurance early Tuesday when the company releases its latest results, but in advance of that, NIO shareholders seemed more comfortable heading for the sidelines rather than staying the course.
Image source: NIO.
Source Fool.com
