Why Red Hat, MannKind, and Navistar International Slumped Today
Wednesday was a historic day in Washington, with President Trump signing the Republican tax reform package into law. Yet after having seen huge gains in anticipation of its passage, the stock market largely ignored the closing scene of the tax reform saga, and major benchmarks remained very close to where they began the day. Even with the positive tone on the political front, some companies suffered from negative events that hurt their shares. Red Hat (NYSE: RHT), MannKind (NASDAQ: MNKD), and Navistar International (NYSE: NAV) 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 Red Hat fell 5% after the company reported third-quarter financial results late Tuesday. On its face, the report looked quite positive, with the open-source technology specialist seeing revenue jump 22% on strength in its cloud computing-related offerings. Adjusted net income also climbed by 20%, with solid gains in subscription-based revenue pointing to the stability of Red Hat's business model, and the company predicted a good end to its fiscal year. With the stock having been up by more than 70% year to date coming into the report, Red Hat's drop likely stems simply from shareholders' desire to lock in a portion of their gains during 2017.
Image source: Red Hat.
Source: Fool.com
