Why JD.Com Inc(ADR) (JD), LendingClub Corp (LC) and ArcelorMittal SA (ADR) (MT) Are 3 of Today’s Worst Stocks

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The bulls and bears played tug-of-war all day, but when all was said and done, the day essentially ended in a stalemate — the S&P 500 closed at 2058.69, up a mere 0.08%, after investors weren’t sure what to make of the concerning economic outlook from China.

Why JD.Com Inc(ADR) (JD), LendingClub Corp (LC) and ArcelorMittal SA (ADR) (MT) Are 3 of Today's Worst StocksNot every name coasted on Monday, however. JD.Com Inc(ADR) (NASDAQ:JD), LendingClub Corp (NYSE:LC) and ArcelorMittal SA (ADR) (NYSE:MT) each lost more than their fair share of ground.

Here’s what investors need to know.

JD.Com Inc(ADR) (JD)

The good news is that Chinese e-commerce company JD.Com reported a 47% improvement in revenue for its recently completed quarter. The bad news is, the 53.97 billion worth of yuan it generated in revenue still fell short of the expected 54.28 billion yuan, and its revenue growth rate is slowing down.

The company expects to report revenue of between 64.2 billion and 66.2 billion yuan for the quarter currently underway, suggesting a growth rate of between 40% and 44%, down from the 60% growth pace seen a year earlier.

T.H. Capital LLC’s Tian X. Hou plainly said the market doesn’t think the growth pace is “good enough,” explaining the 7% dip JD shares made today.

LendingClub Corp (LC)

Already-struggling online lender LendingClub saw its stock tank to the tune of 34% on Monday after its CEO resigned in response to an internal probe.

CEO Renaud Laplanche tendered his resignation in conjunction with the release of the company’s first quarter results. A statement from the company simply noted:

“Lending Club today also reported that on May 6, 2016, the board of directors accepted the resignation of Renaud Laplanche as Chairman and CEO. His resignation followed an internal review of sales of $22 million in near-prime loans to a single investor, in contravention of the investor’s express instructions as to a non-credit and non-pricing element, in March and April 2016.”

The red flag tainted an otherwise encouraging first quarter earnings report. Loan originations were up 68%, and net income swung from a small loss in the first quarter of 2015 to a small gain this time around.

The news prompted multiple downgrades of LC shares.

ArcelorMittal SA (ADR) (MT)

Last but not least, already vulnerable in the wake of a lackluster first quarter earnings report Friday morning, ArcelorMittal shares were easily up-ended on Monday when the U.S. dollar rallied, sending commodity prices deep into the red.

On an adjusted basis, the steel company lost 10 cents per share on $13.4 billion worth of revenue last quarter. The bottom line was better than the expected loss of 15 cents per share of MT, but sales rolled in below estimates of $14.2 billion.

Either way, the adjusted net income was remarkably bigger than the year-ago loss, and total sales fell 22% from the same quarter’s top line a year earlier. Steel production was down 4.5% on a year-over-year basis.

MT shares held up relatively well in the face of Friday’s bad news, but against a backdrop of a commodities collapse today, ArcelorMittal SA was more than ripe for its 10% plunge.

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/2016/05/jd-com-incadr-jd-lendingclub-corp-lc-and-arcelormittal-sa-adr-mt-are-3-of-todays-worst-stocks/.

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