Why Momo, Aratana Therapeutics, and Sea Limited Slumped Today
Wall Street celebrated good news on Tuesday as the Dow and other major benchmarks reached record levels yet again. Washington provided a lot of the impetus for upward movement among stocks, as testimony from the Fed's Jerome Powell in confirmation hearings to become the next chair of the central bank went well and tax reform efforts continued apace. Still, there were some less-than-ideal events that conspired to send some individual stocks lower. Momo (NASDAQ: MOMO), Aratana Therapeutics (NASDAQ: PETX), and Sea Limited (NYSE: SE) 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 Momo fell 19% after the Chinese social networking platform provider released its third-quarter financial report. At first glance, the company's results looked extremely strong, including revenue that more than doubled from year-ago levels and a near-doubling in adjusted net income. Momo also said it expects growth to continue this quarter, with sales growth expectations of at least 50%. Yet as those who follow the stock have seen in past periods, Momo shareholders seem to believe that extensive share-price gains prior to the report warranted a pullback. In the long run, Momo's fundamentals still seem sound.
Image source: Momo.
Source: Fool.com
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