Why Five Below Stock Dropped 14% in February
Investors hit the panic button last month as the number of confirmed cases of COVID-19 spiked to over 80,000 worldwide. The number of confirmed cases currently stands at 97,841, while 3,347 people have died, according to Johns Hopkins.
The outbreak is disrupting supply chains and causing many companies to revise their near-term outlooks lower, particularly those that do business in China such as Five Below (NASDAQ: FIVE).
While investors clearly expect weak near-term sales, Five Below hasn't issued updated guidance for the fiscal fourth quarter. Nonetheless, the negative sentiment in the markets sent the stock down 14.4% last month, according to data provided by S&P Global Market Intelligence.
Source Fool.com
