Tuesday was a down day for the stock market, as the Dow Jones Industrial Average fell as much as 400 points at one point during the session. Other major benchmarks saw more modest declines, with investors largely focusing on the latest new threats from the White House against Chinese trade. Broad economic strength in the U.S. has arguably helped stocks avoid what might have been bigger declines, but some individual stocks suffered outsize losses. Tesla (NASDAQ:TSLA), Snap (NYSE:SNAP), and JD.com (NASDAQ:JD) were among the worst performers on the day. Here’s why they did so poorly.
Musk’s crystal ball ain’t so crystal clear
Shares of Tesla declined 5% after reports surfaced that CEO Elon Musk had sent an email to employees warning that at least one worker has engaged in what Musk called “sabotage.” The CEO specifically said that the unnamed employee had shared data with outsiders and also changed internal product code in manufacturing operating system software without appropriate authority. Worrying about suspicious activity among its employee ranks is the last thing Tesla needs right now as it works to achieve production targets and keep investors happy about the electric-car maker’s overall progress.
Image source: Tesla.
Snap gets a bad review
Snap stock dropped 5% in the wake of the Snapchat operator getting negative comments from stock analysts. Cowen analysts reduced their sales projections for both near-term and long-term results, cutting their price target on the stock from $10 per share to $9. Cowen expects that daily active user numbers will likely come in lower than previously expected, adversely affecting average per-user advertising revenue figures as well. With Snap relying on considerable growth in order to fulfill its potential, Cowen’s viewpoint threw cold water on those who are more bullish about the social media company’s prospects for the immediate future.
Finally, shares of JD.com fell 4%. The Chinese online retailer gave back some of the ground it has picked up over the past week, with many investors excited about the news Monday that Google would work more closely with JD.com to enhance their collective retail prowess globally. Both companies are fighting to stake their claims in the online retail segment, where other companies in the U.S. and China have been quicker to maximize their growth potential. The industry promises to be increasingly competitive for the foreseeable future, but optimists are excited about the potential that JD has to catch up with and even surpass some of its Chinese e-commerce rivals.