The bulls had a few respectable moments on Tuesday, but when all was said and done, they couldn’t get any traction. When the dust settled, the S&P 500 closed at 2,368.39, down 0.29%, logging a second day of losses, and a third loss in the last four days. Yet, it’s not as if the sellers have taken decisive control of the market.
That’s of little solace to owners of Pandora Media Inc (NYSE:P), Dicks Sporting Goods Inc (NYSE:DKS) and Snap Inc (NYSE:SNAP) today, however. These three stocks were the worst of the worst, albeit for understandable reasons.
Snap Inc (SNAP)
For the second day in a row, Snapchat parent company Snap earned a spot on the daily “Worst 3′ list … not just on it, but at the top of it, with a painful 9.8% tumble. Only four trading days following its IPO, Snap shares are now below their first-ever publicly traded price of $24. They’re still above their initial public offering price of $17, but with a pullback from Friday’s peak of $29.44 to today’s close of $21.11, the bears have that line in the sand in their sights too.
The concern is the same as yesterday’s worry regarding Snap. That is, the valuation makes no sense. Forbes contributor Rob Berger best summed up today’s batch of concerns, saying:
“There is, however, one glaring pimple on this otherwise pristine balance sheet. It’s net worth (assets minus liabilities) is just $1.5 billion. By itself that’s not a problem. But when compared to its $24 billion price tag, Snapchat has “some splainin to do.” While a company’s intrinsic value often exceeds its book value, a market value some 15x higher than its net worth raises questions.”
Dicks Sporting Goods Inc (DKS)
The fourth quarter’s earnings season isn’t quite over yet, as Dicks Sporting Goods are all too aware of today. Alhough the retailer managed to top its Q4 earnings and revenue outlooks, the company’s guidance left something to be desired.
For the quarter ending in January, Dicks Sporting Goods earned $1.32 per share on sales of $2.48 billion. The top line was a hair better than estimates, and up 11% on a year-over-year basis. The bottom line was higher to the tune of 17%, and better than estimates for a profit of $1.29 per share of DKS.
The prod for the 8.6% pullback dished out today was the company’s Q1 outlook. Dicks Sporting Goods is only anticipating a profit of between 48 cents and 53 cents per share, versus analyst expectations of 61 cents per share. The company’s costs are going up as it aims to garner business that had been won by several now-defunct competitors.
Pandora Media Inc (P)
Last but not least, Pandora Media fell by 6.5% today, when shareholders’ hopes for a buyout were dashed.
It’s a rumor that’s been floating in the market’s ether for some time now … that the online-radio giant would be acquired by a bigger player wanting an easy entry into the digital music market. Liberty Sirius XM Group (NASDAQ:LSXMA) was the most recent rumored suitor, and arguably created the most hope that a deal would get done. Liberty’s CEO Greg Maffei extinguished that expectation today, though, saying Pandora was overvalued.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
