Stocks started the new trading week with a bang, largely celebrating the fact that Russia is finally starting to feel the burn of cheap oil, and as such may crimp its output in an effort to buoy crude prices. The S&P 500‘s close of 2163.66 was 0.46% better than Friday’s closing level.
It wasn’t a winner for every stock, though. Twilio Inc (NYSE:TWLO), Bristol-Myers Squibb Co (NYSE:BMY) and Twitter Inc (NYSE:TWTR) couldn’t do anything to fend off the sellers on Monday.
Here’s a closer look at what went wrong for each.
Twitter Inc (TWTR)
Last Thursday, when Twitter lost 20% of its value on the heels of news that Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), Salesforce.com, Inc. (NYSE:CRM) and Walt Disney Co (NYSE:DIS) weren’t interested in acquiring the company, most TWTR owners figured the worst was over.
They were wrong. TWTR shares fell another 11.5% today — reaching a new multi-week low in the process — following another round of reports saying the same thing, perhaps underscoring the notion even if it wasn’t breaking news.
Bloomberg gets the blame/credit. It reported this weekend that a meeting to discuss a sale planned for Friday had been cancelled, deflating any lingering hopes that a bidder was waiting in the wings.
Bristol-Myers Squibb Co (BMY)
What was good news for Merck & Co., Inc. (NYSE:MRK) on Monday ended up being bad news for rival drugmaker Bristol-Myers Squibb, sending BMY 10% lower as a result.
The battleground was non-small cell lung cancer. Bristol-Myers Squibb was taking aim at that ailment, but announced in August that its Opdivo failed to achieve adequate efficacy. An update on that trial released today didn’t make Opdivo look any better. Merck poured salt in the wound dished out to BMY shareholders when it announced today that its Keytruda did manage to create positive results as a therapy for lung cancer in its late-stage trial.
While Keytruda still may not inherently become the “go-to” drug for all cases of NSCLC, the fact that it even performs better than chemo in some cases bodes well for MRK, and puts Bristol-Myers Squibb even further behind the eight ball.
Twilio Inc (TWLO)
Finally, cloud computing name Twilio saw its shares plunge 14% on Monday following reports that a handful major shareholders are planning to sell some of their TWLO stakes, locking in gains on the stock following its rally since the June 23rd IPO. The company also intends to sell shares.
All told, $400 million worth of Twilio stock is going to be included in the secondary offering. The company’s portion of that total is $50 million, with the rest consisting of individual shareholders and institutions. That’s a huge chunk of the company’s $4.6 billion market cap, though, and investors are fearful that injection of supply could work against the value of TWLO. Indeed, it already has.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
