Ten stocks kicked off the trading week, booking losses, defying a broader market optimism, as investors began repositioning portfolios ahead of key events alongside a number of negative company-specific developments that sparked selling positions.
Meanwhile, Wall Street’s main indices all finished in the green, led by Nasdaq, up 1.37 percent, followed by the Dow Jones, jumping 1.12 percent, and the S&P 500, increasing 1.07 percent.
In this article, we focus on the performance of the 10 worst-performing stocks on Monday.
To come up with the list, we picked exclusively those with a $2 billion market capitalization and 5 million shares in trading volume.
Stock market data. Photo by Photo by Alesia Kozik
10. Oracle Corp. (NYSE:ORCL)
Oracle dropped for a second day on Monday, shedding 4.85 percent to finish at $277.18 apiece, as investors took heart from an investment firm’s conservative rating, while repositioning portfolios ahead of its upcoming annual shareholders’ meeting.
In a market note, private banking firm Berenberg maintained its “neutral” rating and $306 price target for Oracle Corp. (NYSE:ORCL), marking a 10.4 percent upside potential from its latest closing price.
Meanwhile, Jefferies gave the company a “buy” recommendation with a price target of $400, or a 44 percent premium over its last closing price.
Jefferies’ coverage reflected Oracle Corp.’s (NYSE:ORCL) new five-year targets, with revenues of $225 billion and $21 in earnings per share, or a 31 percent and 28 percent compounded annual growth rate, respectively.
In other developments, Oracle Corp. (NYSE:ORCL) is set to hold its annual shareholders meeting on November 18, where investors will closely watch out for cues of more partnerships.
9. AppLovin Corp. (NASDAQ:APP)
AppLovin saw its share prices decline by 5.57 percent on Monday to finish at $565.94 apiece as investor sentiment was dampened by news that it is facing a new round of investigation, this time by multiple state attorneys general, over consumer data concerns.
A report by the New York Post over the weekend, citing unnamed sources, said that state regulators from Delaware, Oregon, and Connecticut have reached out to multiple short sellers as part of their preliminary investigations into AppLovin Corp. (NASDAQ:APP).
The probe apparently began in March and continued through the summer.
This followed the Securities and Exchange Commission’s own investigation of AppLovin Corp. (NASDAQ:APP), which was announced earlier this month, to similarly look into its data collection practices.
According to an earlier report by Bloomberg, the SEC was looking into allegations that the listed firm violated service agreements with its platform partners to deliver more targeted advertising to consumers.
For its part, AppLovin Corp. (NASDAQ:APP) said it engaged a law firm to investigate the allegations.
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