These 10 Stocks Have Collapsed

Ten stocks were sold down on Friday, defying a wider market optimism, as investors were disheartened by a flurry of negative corporate developments and dismal earnings performance.

Meanwhile, the Dow Jones was up by 0.47 percent, the S&P 500 increased by 0.40 percent, while the tech-heavy Nasdaq grew by 0.24 percent.

In this article, we name Friday’s 10 worst performers and detail the reasons behind their drop.

To compile the list, we focused exclusively on stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.

An expert investor in a trading floor, surrounded by computers and trading screens.

10. Flagstar Financial Inc. (NYSE:FLG)

Flagstar Financial dropped its share prices by 5.48 percent on Friday to finish at $11.39 apiece as investor sentiment was dampened by news that it was merging with its banking subsidiary, but with the latter the surviving entity.

In a statement, Flagstar Financial Inc. (NYSE:FLG) said that its board of directors approved on Thursday the company’s proposed merger with Flagstar Bank, N.A. However, it will continue to trade on the New York Stock Exchange under the same ticker symbol.

Flagstar Financial Inc. (NYSE:FLG) said that the reorganization was aimed at further reducing costs, simplifying organizational structure, streamlining managerial, operational, and administrative functions throughout the bank, eliminating redundant corporate activities and duplicative supervision and regulation.

The reorganization is subject to both regulatory and shareholder approval.

In other news, Flagstar Financial Inc. (NYSE:FLG) said it narrowed its net loss attributable to shareholders for the first half of the year by 72 percent to $186 million from $668 million in the same period last year.

Net interest income after provision for credit losses increased by 44 percent to $686 million from $476 million year-on-year.

Additionally, Flagstar Financial Inc. (NYSE:FLG) announced the distribution of quarterly cash dividends amounting to $0.01 for every common share to stockholders as of September 7. The dividends are payable on September 17.

9. SharpLink Gaming, Inc. (NASDAQ:SBET)

SharpLink Gaming extended its losing streak to a third consecutive day on Friday, shedding 5.7 percent to close at $21.99 apiece as investors turned cautious while in a wait-and-see mode following the appointment of a BlackRock executive as the company’s co-CEO.

In a statement, SharpLink Gaming, Inc. (NASDAQ:SBET) welcomed Joseph Chalom as its new co-CEO effective on Thursday, July 24.

Chalom boasts of 20 years of experience in digital finance innovations at BlackRock, including the launch of the iShares Ethereum Trust (ETHA), the largest Ethereum exchange-traded product with over $10 billion in current assets.

Rob Phythian, SharpLink Gaming, Inc.’s (NASDAQ:SBET) current CEO, will transition to the role of president over the next quarter and remain a board member.

The drop in shares of SharpLink Gaming, Inc. (NASDAQ:SBET) may have been influenced by a cautious market sentiment until the company elaborates on its plans following the appointment.