Why GoPro Inc (GPRO), Tesla Motors Inc (TSLA) and Adobe Systems Incorporated (ADBE) Are 3 of Today’s Worst Stocks

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The bulls tried to get the party started again after Tuesday’s hiatus from bullishness, but could never get the indexes rolling upward enough to punch through some key technical resistance. Even so, the 0.8% gain the S&P 500 managed to dish out today was respectable, leaving the index within reach of a break above its ceiling tomorrow.

Why GoPro Inc (GPRO), Tesla Motors Inc (TSLA) and Adobe Systems Incorporated (ADBE) Are 3 of Today's Worst StocksThere were more than a few stocks that didn’t even come close to dishing out meaningful bullishness on Wednesday, however. Among the most alarming losers were Tesla Motors Inc (NASDAQ:TSLA), GoPro Inc (NASDAQ:GPRO) and Adobe Systems Incorporated (NASDAQ:ADBE), mostly thanks to analyst actions.

Adobe Systems Incorporated (ADBE)

Looks like software giant Adobe Systems isn’t going to do quite as well in 2016 as once thought. The company that makes Acrobat and Photoshop now says it’s apt to earn $2.70 per share in the coming year, on revenue of $5.7 billion. Analysts had been collectively expecting a profit of $3.19 per share of ADBE on sales of $5.93 billion.

Adobe offered a pair of understandable reasons for the contracted outlook: disadvantageous exchange rates and the migration from installed software to cloud-based software.

Not all analysts were sympathetic to the company’s plight, though, lowering expectations from ADBE anyway. Credit Suisse, for instance, dropped its price target on ADBE from $75 to $65, although it maintained its “neutral” stance.

ADBE fell more than 5% on the news.

Tesla Motors Inc (TSLA)

The base model of the much-ballyhooed Model X from Tesla Motors is going to cost more than the market was expecting. With marketability questions suddenly surfacing, traders sent TSLA shares lower by nearly 4%.

What’s interesting is that news of the car’s price wasn’t unveiled today — the sticker price of $132,000 for the top-of-the-line model was unveiled a few weeks ago. But, after mulling it in the meantime, analysts for Morgan Stanley finally decided sticker-shock for the electric vehicle could pose a sales problem. Specifically, Morgan Stanley cut its target price on TSLA today, from $465 to $450, based on the vehicle’s price.

Baird & Co. analyst Ben Kallo did the same, though for a slightly different reason. He explained:

“We are confident TSLA will be able to ramp Model X production, although the timing is uncertain, and with the current market backdrop we would like to keep some dry powder. With limited visibility to positive catalysts until the release of the Model III prototype [in early 2016], we are moving to the sidelines.”

Kallo moved his price target on TSLA from $335 to $282.

GoPro Inc (GPRO)

Last but not least, GoPro shares finished the day down more than 4% on the heels of another Morgan Stanley downgrade.

Morgan Stanley analyst James Faucette opined:

“Commentary by management at recent investor events confirm that Session [the company’s newest camera] has been a difficult sell at the same price point of its historically favorite HERO4 Silver model. … Disappointing demand culminated in GoPro announcing its decision to reduce the price to $299 last week, a $100 discount from the $399 price point when the product was launched in July.”

Ergo, Faucette cut his price target on GPRO from $62 to $35, yet still somehow justified holding the official call as “equal weight.”

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/2015/10/gopro-inc-gpro-tesla-motors-inc-tsla-adobe-systems-incorporated-adbe-3-todays-worst-stocks/.

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