Major benchmarks eased lower on Monday, although moves were generally small. Investors seemed reluctant to make big commitments in quiet holiday trading, instead hoping that they'll be able to figure out just what Chinese trade officials want in exchange for a potential short-term deal. Even with many market participants checking out today, some stocks still saw significant moves lower. CrowdStrike Holdings (NASDAQ: CRWD), SmileDirectClub (NASDAQ: SDC), and Parsley Energy (NYSE: PE) were among the worst performers. Here's why they did so poorly.
Shares of CrowdStrike Holdings dropped 9.5% after the digital security specialist got negative comments from a Wall Street analyst. Professionals at Citi started their coverage of CrowdStrike with a sell rating, and they set a price target of just $43 per share. That's still about 20% lower than where the stock closed Monday, and Citi just thinks that the company's shares have come too far too quickly. The silver lining is that even analysts who've panned the stock recently are respectful of CrowdStrike's business model, focusing solely on an inflated valuation in making their recommendations. That bodes well for CrowdStrike's long-term fundamental performance even if the share price does come under short-term pressure.
Image source: CrowdStrike Holdings.
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Source: Motley Fool
(October 14, 2019 - 4:31 PM EDT)
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