Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Why Grubhub, Beyond Meat, and IPG Photonics Slumped Today


Tuesday was relatively quiet on Wall Street, with major benchmarks finishing modestly lower as investors awaited the latest moves from the nation's central bank. The Federal Open Market Committee began a two-day meeting today, and most market watchers expect the Fed to reduce short-term interest rates by another quarter percentage point when the meeting concludes Wednesday. That might provide further ammunition for bullish investors that the U.S. economy will be able to avoid a recession. Yet some high-profile stocks posted sharp declines, weighing on sentiment. Grubhub (NYSE: GRUB), Beyond Meat (NASDAQ: BYND), and IPG Photonics (NASDAQ: IPGP) were among the worst performers. Here's why they did so poorly.

Shares of Grubhub plunged over 43% after the food delivery specialist reported its third-quarter financial results. Many of Grubhub's metrics indicated continued growth, including revenue gains of 30%, active diner counts up 29% to 21.2 million, and gross food sales seeing a 15% rise. Even though Grubhub's adjusted net income fell by 50%, the bottom-line results were consistent with what most investors had expected. Yet the company disappointed investors by serving up poor projections the remainder of the year. With potential competition looming, shareholders just don't feel confident that Grubhub can live up to the high expectations they've had for the company.

Image source: Grubhub.

Continue reading


Source Fool.com

Like: 0
Share

Comments