Why Topgolf Callaway Stock Plunged 24% This Week
Sometimes, confirming investors' worst fears is enough to send a stock sharply lower, and that's exactly what we saw with shares of Topgolf Callaway (NYSE: MODG) this week. First-quarter earnings were fine, but a small change in guidance sent shares lower.
According to data provided by S&P Global Market Intelligence, shares of Topgolf Callaway fell as much as 24% this week and closed the week down 22.8%.
Revenue was up 12.2% to $1.17 billion, but net income dropped 71.2% to $25 million, or $0.13 per share. Management said that investments in operating expenses led to the drop in earnings, partly due to the cost of building 11 new Topgolf facilities this year.
Source Fool.com
