Why Advanced Micro Devices, Office Depot, and Iconix Brand Group Slumped Today
Wall Street took a downward turn Monday as federal tax reform during this session of Congress began to look more uncertain than ever. The S&P 500 and Dow Jones Industrials both fell about 0.4%, and investors struggled with concerns that the long-expected stock market correction could be sparked by any result that was less than a complete victory by the White House and the tax-cut wing of Republicans in Congress.
Adding to the downbeat mood were steep declines in the stocks of a few companies that suffered from bad news specific to them. Advanced Micro Devices (NASDAQ: AMD), Office Depot (NASDAQ: ODP), and Iconix Brand Group (NASDAQ: ICON) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Advanced Micro Devices dropped 11% after the chipmaker drew negative comments from various Wall Street analysts. Morgan Stanley cut its rating on AMD from equal weight to underweight, and cut its price target on the stock from $11 to $8 because of long-term doubts about whether temporary demand drivers like cryptocurrency mining and video game consoles will be able to offset the company's weaker performance in its core markets. Investors were already skeptical about the staying power of its recent surge, but today's move adds some credibility to the assertions, especially given the widespread high expectations among shareholders in AMD.
Source: Fool.com