Why Snap, LendingClub, and Weight Watchers International Slumped Today
Wall Street enjoyed a relatively quiet day on Wednesday that left most major benchmarks relatively close to their closing levels from Tuesday. Neither President Trump's trip to Asia nor election results in several key races Tuesday night were enough to produce any clear moves for stocks, and the holding pattern that market participants have seen in recent days remained in place. Despite the fairly sanguine mood among investors, some individual stocks suffered substantial declines. Snap (NYSE: SNAP), LendingClub (NYSE: LC), and Weight Watchers International (NYSE: WTW) 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 Snap plunged over14.5% after the social media company reported disappointing results in its third-quarter financial report. Snap's growth remained quite strong at first glance, with a 62% rise in sales coming on a 20-million-user increase in daily active users to 178 million. Yet those who follow the maker of the Snapchat app were expecting even larger growth numbers, and Snap is facing criticism that its service is hard to use at the same time that it deals with unsold inventories of its Spectacles, prompting a one-time writedown during the quarter. Snap has ideas on how to rebound, but investors will want to see results first before they put too much confidence in the stock going forward.
Image source: Snap.
Source: Fool.com