Why Royal Caribbean Cruises Ltd (NYSE:RCL), Michael Kors Holdings Ltd (NYSE:KORS) and Advanced Micro Devices, Inc. (NASDAQ:AMD) Are 3 of Today’s Worst Stocks

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Stocks got the new week started on the right foot, shrugging off Friday’s big setback to push most of the indices back within reach of multi-year highs. The S&P 500 advanced 0.92% to end the day at 2,100.40.

It wasn’t a banner day for all stocks, however. Several major names including Advanced Micro Devices, Inc. (NASDAQ:AMD), Michael Kors Holdings Ltd (NYSE:KORS) and Royal Caribbean Cruises Ltd (NYSE:RCL) all found themselves deep in the red on Monday. Here’s why.

Advanced Micro Devices, Inc. (AMD)

Why Royal Caribbean Cruises Ltd (RCL), Michael Kors Holdings Ltd (KORS) and Advanced Micro Devices, Inc. (AMD) Are 3 of Today's Worst StocksIt’s not exactly ground-breaking news to say chipmaker Advanced Micro Devices is struggling. AMD has been on the defensive since 2011, unable to really grow the top or bottom line in the meantime.

The extent of the challenge may not have been fully understood Thursday, however, when Micro Devices announced along with Q1’s results that it would be getting completely out of the server business rather than try to hold on and retake market share.

AMD shares tanked on the news during Friday’s trading, but having had the weekend to think about it, the sellers decided the stock hadn’t been punished enough. It fell more than 3% today.

Michael Kors Holdings Ltd (KORS)

As if Michael Kors Holdings shareholders haven’t suffered enough already over the past twelve months, today’s near-2% dip from KORS pushed the stock to yet another 52-week low. All told, shares are now down 36% since their May-2014 peak.

The prod for today’s pullback from KORS was a downgrade from Mizubo. The research firm is now only neutral on KORS, down from a buy rating, though its new price target of $70 is still above the stock’s current price.

The real headwind Michael Kors Holdings shares are facing at this point, however, may have more to do with a bigger-picture idea that’s been sensed more than stated in recent months. The notion? The brand name simply isn’t cool, chic or hip anymore.

Just for the record though, Business Insider put the idea in print a few days ago, and the degree to which the write-up resonated among consumers and investors was alarming.

Royal Caribbean Cruises Ltd (RCL)

The good news is, Royal Caribbean Cruises did better than expected in its first quarter of the year. The bad news is, nobody cared. Investors were far more worried about the lackluster outlook for the rest of the year.

When all was said and done, the cruise line earned 20 cents per share of RCL last quarter. While that came up short of Q1-2014’s profit of 21 cents, it did top estimates of 14 cents per share.

On the flipside, Royal Caribbean Cruises added its first quarter report that it was now only expecting a profit of somewhere between $4.45 and $4.65 per share of RCL in 2015, versus analyst estimated of $4.75. A strong dollar and rising oil prices were named as the reason for the contracted outlook.

RCL dipped 8% on the news.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/04/royal-caribbean-cruises-rcl-michael-kors-holdings-kors-advanced-micro-devices-amd-3-todays-worst-stocks/.

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