Why Applied Optoelectronics, Trivago, and First Majestic Silver Slumped Today
Friday was another quiet day on Wall Street, but the overall direction of the market remained positive. Modest gains for major benchmarks sent the Dow Jones Industrials to record heights yet again, even as some market participants begin to look ahead with fear about the traditionally difficult months of September and October. Favorable numbers on the employment front bolstered investor confidence, and a lack of bad news on the geopolitical stage played a positive role as well. Yet some individual stocks suffered big losses, and Applied Optoelectronics (NASDAQ: AAOI), Trivago (NASDAQ: TRVG), and First Majestic Silver (NYSE: AG) 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.
Applied Optoelectronics stock lost a third of its value in the wake of the release of the company's fiscal second-quarter financial report. The maker of fiber-optic networking products said that revenue doubled from year-ago levels, and earnings soared by almost 800% on strong current conditions in the industry. Yet shareholders weren't satisfied with Applied Optoelectronics' guidance, which included calls for decelerating revenue growth for the current quarter. With the stock having soared over the past year, expectations among investors were extremely high, but Applied Optoelectronics' fundamentals still look strong even if the share price perhaps got ahead of itself.
Image source: Applied Optoelectronics.
Source: Fool.com
First Majestic Silver Corp. Stock
First Majestic Silver Corp. is currently one of the favorites of our community with 7 Buy predictions and no Sell predictions.
As a result the target price of 6 € shows a slightly positive potential of 4.68% compared to the current price of 5.73 € for First Majestic Silver Corp..
