5 of Last Week's Biggest Losers
There's never a shortage of losers in the stock market. Let's take a closer look at five of this past week's biggest sinkers.
Let's start with Organovo. The company that turned heads last month as a 3-D printing play aiming to manufacture human tissue for research purposes tumbled after pricing a secondary offering of 9 million shares at $4.50 apiece.
You know it's a bad sign when you have to price a secondary at a steep discount. Organovo's technology is compelling, but some recent articles have been critical about how far away the company may be from living up to the hype.
Jive Software also was a turkey. The provider of social-networking software solutions plunged after revising its guidance lower. Jive posted a widening deficit for its latest quarter, but it was Jive's outlook -- calling for lower revenue and a larger loss than earlier projected -- that did it in.
Weight Watchers helps its clients lose weight, but the company itself is shedding a CEO. The weight-management specialist had a double dose of bad news for investors as it lowered its forecast for 2013 and announced that its CEO had resigned.
Riverbed Technology slipped after serving up uninspiring financials. Riverbed's results were generally in line with expectations, but there are integration concerns with a recent acquisition that are squeezing margins. Investors are always worried if a company overpays for a purchase, but things really get hairy if the synergies don't materialize right away. Weakness noted in its federal business also didn't sit well with investors.
Chinese companies have been rallying in recent weeks, but Sohu.com bucked the trend after posting weak quarterly results. Disappointing online gaming revenue left Sohu falling short of expectations on the top line. Sohu's guidance also calls for net income to fall shy of estimates.
The stock had moved higher in recent weeks on reports that it may be selling its Sogou search engine at a pretty lucrative price. Since that didn't materialize right away, and with the sloppy financials, it's easy to see why Sohu slipped.
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The article 5 of Last Week's Biggest Losers originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Riverbed Technology and Sohu.com and owns shares of Riverbed Technology. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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