Unable to follow-through on Monday’s bullish effort, the bears took charge again on Tuesday, perhaps incited by a disappointing consumer confidence report. The S&P 500′s close of 2143.16 was 0.38% lower than Monday’s last trade, and left the index right on some key technical levels.
Leading the way lower were Under Armour Inc (NYSE:UA), Sprint Corp (NYSE:S) and Twitter Inc (NYSE:TWTR).
Here’s a look at what derailed each name.
Twitter Inc (TWTR)
In a different set of circumstances, it could have been interpreted in a bullish light. There’s no denying Twitter is fighting an uphill battle though, so with the company’s decision to lay off another swath of its workforce, shareholders sent TWTR 4.3% lower on Tuesday.
The news came late yesterday — Twitter intends to cut loose of 8% of its staff, or 300 workers, sometime this week, following through on rumors that surfaced two weeks ago. That’s in addition other rounds of layoffs that began to materialize around this time last year.
In light of the fact that no suitor ever come forward with a legitimate bid last month amidst a flurry of rumors it would be bought out, the layoffs largely confirm the company doesn’t have much of a future on its own.
Under Armour Inc (UA)
The good news is, Under Armour managed to top last quarter’s earnings estimates. The bad news is, nobody cares. UA shares plunged 13.3% anyway, with most investors spooked by a lackluster revenue outlook.
Last quarter — the company’s third fiscal quarter of the year — Under Armour earned 29 cents per share on revenue of $1.47 billion. Both were better than estimates for a profit of 20 cents per share and $1.45 billion worth of sales, up 22%.
Fast growth is a two-edged sword, however. Sooner or later, year-over-year comparisons become tougher to exceed, and in Under Armour’s case, that growth has not come cheap. The company said it intends to continue spending heavily to sustain its growth pace. But, UA shareholders are growing increasingly concerned about the shrinking ROI that’s come with greater size.
Sprint Corp (S)
Finally, although the wireless telecom outfit had already warned the market that last quarter’s numbers wouldn’t be all they were hoped to be, S shares suffered on Tuesday following the release of its official fiscal Q2 numbers.
Last quarter, Sprint lost 4 cents per share on revenue of $8.25 billion. The top line was better than the expected $8.05 billion, and better than the year-ago revenue tally of $7.98 billion. The loss was also smaller than the loss of 15 cents per share of S booked in the same quarter a year earlier, largely on the heels of major cost cuts.
That diminished spending isn’t going unnoticed though. Net additions of postpaid subscribers rolled in at 344,000, versus estimates of 403,000 new customers.
S lost 6% of its value on Tuesday.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
