Buzz Stocks: GoPro Inc, Best Buy Co Inc, and WebMD Health Corp.

Today's stocks to watch include GoPro Inc (GPRO), Best Buy Co Inc (BBY), and WebMD Health Corp. (WBMD)

by Alex Eppstein

Published on Jan 14, 2016 at 9:28 AM
Updated on Jun 24, 2020 at 10:16 AM

After a rough Wednesday, U.S. stocks will attempt to bounce back this morning, with futures pointed higher. Among the equities in focus are camera concern GoPro Inc (NASDAQ:GPRO), electronics retailer Best Buy Co Inc (NYSE:BBY), and health resource WebMD Health Corp. (NASDAQ:WBMD). 

  • GPRO has cratered in pre-market trading, down 19% and on track for a record low after the company offered up downbeat fourth-quarter sales expectations and announced it plans to cut about 7% of its workforce. The news has analysts piling on the bearish bandwagon, with FBN lowering its opinion to "sector perform" from "outperform" and its price-target to $11 from $30. Six other brokerages cut their price targets, as well -- including Baird, which expects acquisition rumors to start flying around again. Last night, GoPro Inc settled at $14.61, already down nearly 78% from its annual high of $65.49 in August. Amid this sell-off, bearish bets have been picking up at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). GPRO's 50-day put/call volume ratio of 0.63 outstrips 90% of comparable readings from the prior 12 months.
  • BBY is also poised to open at an annual low, down 10% pre-market after the retailer reported weak holiday sales, and cut its fourth-quarter domestic earnings and revenue forecasts. Best Buy Co Inc is no stranger to losses, down 13.6% year-over-year as of Wednesday's close at $29.26. That hasn't stopped option traders from placing bullish bets at a faster-than-usual clip. Specifically, BBY's 10-day ISE/CBOE/PHLX call/put volume ratio comes in at 3.01 -- in the 92nd percentile of its annual range. If the stock continues to struggle, though, a capitulation among these optimists could result in headwinds.
  • WBMD is exploring a possible sale of all or part of its business, according to a Financial Times report. As such, the shares -- which closed at $53.21 yesterday -- are set to gap up 8.6% at the open, putting them in four-year-high territory. Short sellers could be in trouble. A sizable 16.8% of WebMD Health Corp.'s float is sold short, which would take more than three weeks to cover, at typical daily volumes. Separately, the company will make a presentation today at the JPMorgan Healthcare Conference.

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