Mall-mobbing teens might no longer be thought of as recession-proof, but they’re still a popular target for companies.
Of course, that doesn’t mean they are an easy one. While consumers in general are often described as fickle, no group seems to roll with the trends as much as the coming-of-age.
With that in mind, one might think that — out of the countless companies seeking a younger crowd — the newer kids on the block might have a leg up on the competition. They don’t have the baggage of an Abercrombie & Fitch (ANF), haven’t yet peaked like Deckers Outdoor’s (DECK) Ugg boots and can position themselves as hip or cool from the get-go.
In reality, that’s far from the case. A quick review of “young-gun” stocks — companies that are relatively new to the scene and target a younger crowd — shows polarized results, suggesting that countless once-cool companies seem to hit the market after they’ve peaked.
Just look at these four stocks, three of which have plunged big-time since their offerings: