Why Square, Glu Mobile, and NetApp Slumped Today
Wall Street closed the week on a negative note, as major stock indexes once again suffered losses. Between trade and tariff issues, monetary policy, and ordinary economic conditions, investors feel increasingly nervous about whether the future can be even close to as good as the past several years have been. Earnings season has also exposed some problem areas, and unimpressive reports from some companies led to dramatic share-price declines. Square (NYSE: SQ), Glu Mobile (NASDAQ: GLUU), and NetApp (NASDAQ: NTAP) were among the worst performers. Here's why they did so poorly.
Shares of Square dropped 14% even though the payment processing company saw solid growth in its second-quarter results. Revenue soared 44% from the year-earlier period, and adjusted pre-tax operating earnings were higher by an even stronger 54%. Square called out its Cash App mobile application for making peer-to-peer payments as contributing substantially to growth, and CEO Jack Dorsey believes that the company can serve both individuals and businesses with separate but important ecosystems. Yet even with expectations for 43% full-year revenue growth this year, Square investors wanted to see faster growth prospects than what they actually got.
Image source: Square.
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