Why Netflix, Inc. (NFLX), United States Steel Corporation (X) and Williams Companies Inc (WMB) Are 3 of Today’s Worst Stocks

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The market may have mustered a respectable gain on Tuesday, but for the most part, the bulls as well as the bears remain reserved in front of Friday’s Brexit decision; voting will take place on Thursday. The S&P 500 closed at 2088.90, up 0.27%, but still struggling to move above some key technical resistance.

Why Netflix, Inc. (NFLX), United States Steel Corporation (X) and Williams Companies Inc (WMB) Are 3 of Today's Worst StocksHowever, that would still be preferable to the fates suffered by Netflix, Inc. (NASDAQ:NFLX), United States Steel Corporation (NYSE:X) and Williams Companies Inc (NYSE:WMB) today.

Here’s a closer look at why each lost more than a little ground on Tuesday.

Netflix, Inc. (NFLX)

In the grand scheme of things, it can’t be a complete surprise to Netflix owners. Netflix spends big to make sure it has the world’s biggest and best on-demand video library, and it makes a point of charging its customers less than inferior rivals do. But it’s expanding internationally now, and there will come a point when it runs out of easy-to-win customers and must-raise prices to pay for its huge (and increasingly expensive) library of digital content.

NFLX owners were not so gently reminded of that today, sending NFLX shares 3% lower.

Nomura analyst Anthony DiClemente did the deed, suggesting the company could lose 480,000 subscribers as it continues to implement price hikes planned through the end of this year. While DiClemente remains positive about the company’s future, noting that lost subscriber revenue will be offset by those members that remain, investors are starting to see NFLX as less of a growth story and more of a commodity.

United States Steel Corporation (X)

United States Steel Corporation — aka U.S. Steel — saw its shares lose nearly 5% of their value on Tuesday, but not because of anything the company did wrong. Rather, the prod for the steep pullback from X was largely the result of a commodity pullback. Blame the U.S. dollar, mostly. It was up 0.4% today, putting pressure on commodity prices.

The irony? Steel prices didn’t actually get hit that hard. In fact, steel prices are expected to keep rising over the remainder of the year. The market was unimpressed, however, punishing X for being in the wrong industry at the wrong time.

Williams Companies Inc (WMB)

Last but not least, talk about role reversal … just yesterday, Energy Transfer Equity LP (NYSE:ETE) had earned a spot on the daily Worst 3 list, while Williams Companies soared when it looked like a court case between the two parties was going to favor WMB. Thing didn’t quite pan out for Energy Transfer Equity as badly as presumed, however, sending ETE shares a hefty 17% higher, and pulling WMB down roughly 3%.

In simplest terms, Energy Transfer Equity may not be forced to go ahead and acquire Williams Companies after all, as had been planned two years ago before crude oil’s implosion made the deal much less attractive.

Williams Companies had been arguing that Energy Transfer Equity couldn’t claim a lack of a tax benefit as a reason to back out of the deal, but the judge and tone of the case today seemed to suggest the court was receptive to the possibility the deal could indeed be negated if the acquisition offer was made on good faith that the tax break would be able to be reaped.

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/2016/06/why-netflix-inc-nflx-united-states-steel-corporation-x-and-williams-companies-inc-wmb-are-3-of-todays-worst-stocks/.

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