Why Are These Stocks Falling Today?

Next up is Vale SA (ADR) (NYSE:VALE), whose stock has retraced 4% on the day as spot iron ore prices hit fresh 10-year lows due to declining Chinese Steel demand. Due to the oversupply situation in the market, iron ore spot prices trade for under $40 per metric ton, 66% below what they were a few years ago. Vale is a major iron ore producer and needs commodity prices to pick up in order to produce the profits investors expect from it. Brazil’s macroeconomic situation is also weighing on Vale, as the country suffers its worst economic crisis since the 1930’s. A weak Brazilian economy translates to a weak real, which lowers Vale’s cash flow metrics in dollar terms. A total of 24 funds from our database owned $140.9 million worth of Vale SA (ADR) (NYSE:VALE)’s stock at the end of the third quarter.

Barnes & Noble, Inc. (NYSE:BKS) can’t seem to catch a break as its stock continues to decline. After falling almost 5% on Thursday, Barnes & Noble, Inc. (NYSE:BKS) shares are down by another 21% today after the company reported a second quarter loss of $0.36 per share on revenue of $894.65 million, missing estimates by $0.05 per share and $23.18 million, respectively. Comparable-store sales declined by 3% year-over-year, while NOOK sales dropped by 31.9% year-over-year to $43.5 million due to lower content sales.

Last but not least, GoPro Inc (NASDAQ:GPRO) is off 3% after the analysts at RW Baird downgraded the stock to ‘Neutral’ from ‘Outperform’ and lowered the price target to $18 from $36. The analysts cited the lack of a near-term catalyst, and the lack of a meaningful pickup in sales as reasons for the downgrade. GoPro shares have certainly fallen on hard times as shares are down over 70% year-to-date. While the commodity product pricing pressure thesis is playing out just as the bears warned, the number of smart money investors in the stock inched up to 25 in the third quarter from 21 in the second quarter as the stock trades near value territory levels.

Disclosure: None