The stock market looked a bit stronger on Thursday, recovering from recent losses with modest advances for most major benchmarks. Investors are far from certain about how much longer the bull market will be able to deliver positive returns, especially as the geopolitical and macroeconomic environment becomes cloudier. In that context, many market participants focused more on individual stocks, and some companies had to deal with challenges that sent their share prices lower. NIO (NYSE:NIO), PVH (NYSE:PVH), and Amicus Therapeutics (NASDAQ:FOLD) were among the worst performers. Here’s why they did so poorly.
NIO keeps hitting the brakes
Shares of NIO dropped 10%, continuing its volatile trading throughout the week. The Chinese electric vehicle specialist had initially seen a solid uptick on Tuesday after reporting its first-quarter financial results, as investors ignored a more-than-50% plunge in revenue and substantial losses. Yet shares reversed course yesterday after stock analysts weighed in with negative views about future sales and rising competition. One of the more bearish calls came from Bank of America/Merrill Lynch, which cut its rating on the stock from neutral to underperform and slashed its price target by more than half to just $3 per share. With the backdrop of trade tensions, U.S. investors are having trouble assessing NIO’s prospects to profit from the trend toward electric vehicles.
Trade worries send PVH lower
PVH saw its stock drop 15% after reporting its fiscal first-quarter financial results. The company behind fashion brands Calvin Klein and Tommy Hilfiger posted modest growth in sales and adjusted earnings, overcoming headwinds from a strong U.S. dollar. Yet CEO Emanuel Chirico cited a number of potential challenges facing PVH in the future, including softness in the retail industries in both the U.S. and China, as well as volatile foreign exchange rates, in cutting guidance