Why Infosys Ltd (INFY), Twitter Inc (TWTR) and VMware, Inc. (VMW) Are 3 of Today’s Worst Stocks

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Another slow news day meant another slow day for stocks. When all was said and done, the S&P 500 closed at 2,017.46, up 0.13%, largely mirroring and aligning with Friday’s bar. This second day of tepidness was underscored by low volume though, suggesting last week’s rally is already out of steam.

Why Infosys Ltd (INFY), Twitter Inc. (TWTR) and VMware, Inc. (VMW) Are 3 of Today's Worst StocksIt wasn’t a mild Monday for all names, though. Twitter Inc (NYSE:TWTR), Infosys Ltd (NYSE:INFY) and VMware, Inc. (NYSE:VMW) all took one on the chin, for understandable reasons. Here’s what investors need to know.

VMware, Inc. (VMW)

Truth be told, it remains to be seen whether or not it’s a bad deal. But, in the shadow of confusion, VMware investors weren’t taking any chances. They sent VMW shares lower to the tune more than 8% on Monday … the biggest large-cap loser of all.

At the heart of the setback for VMW was an offer from Dell to buy EMC Corporation (NYSE:EMC), which owns 81% of VMWare. The offer valued EMC at $67 billion, or $33.15 per share. Of that $33.15, $24.05 is to be paid in cash, and the remaining $9.10 is to be paid in a tracking stock designated to reflect the value of EMC’s (soon Dell’s) stake in VMWare.

The basic math made sense, but existing VMW owners who are confused about the unusual arrangement were worried about dilution, even if it’s indirect dilution.

Twitter Inc (TWTR)

Investors basically know Twitter is in trouble, with or without the recent appointment of Jack Dorsey as chief of the company again. But, there was just something startling announced today that rattled TWTR in a way that the market wasn’t quite ready to hear so soon.

As it turns out, though it’s just a rumor, it’s a credible rumor that Twitter is looking to lay off a wide swath of its workforce before the end of the week. Few are arguing that it doesn’t need to be done, but it’s startling that Dorsey is making such a drastic, quick decision after being back on the job less than a week; he may not even realize exactly what talents are going to be getting the boot.

The market, nervous that the microblogging platform is in worse shape than it seems and/or that Dorsey is being more than a little reckless, sent TWTR stock lower by almost 7%.

Infosys Ltd (INFY)

Last but not least, technology and services consulting company Infosys dished out a double dose of bearish news to its stockholders today, sending INFY shares nearly 7% lower.

The first shocker was, although the company managed to top its profit and sales forecasts for the previous quarter, Infosys also reeled in its full-year sales forecast from growth of between 7.2% and 9.2% to a growth rate of only 6.4% to 8.4%.

Worse, Infosys CFO Rajiv Bansal announced today he would be leaving the company to pursue other unnamed interests. He’ll be missed by the company and INFY shareholders. He was one of the linchpins that helped pull the company out of its corporate quicksand it was in a couple of years ago.

This story has been corrected to reflect Rajiv Bansal’s position as CFO, not CEO. We apologize for the error.

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/infosys-ltd-infy-twitter-inc-twtr-vmware-inc-vmw-3-todays-worst-stocks/.

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