Analysts downwardly revised their ratings and price targets on AMZN, FEYE, and GPRO
Analysts are weighing in on e-tail stock Amazon.com, Inc. (NASDAQ:AMZN), cybersecurity concern FireEye Inc (NASDAQ:FEYE), and wearable camera maker GoPro Inc (NASDAQ:GPRO). Here's a quick roundup of today's bearish brokerage notes on AMZN, FEYE, and GPRO.
Weak Guidance Weighs on Amazon.com Shares
AMZN is pointed 4% lower ahead of the open, following an earnings report that included weaker-than-expected fourth-quarter revenue and current-quarter profit guidance. While several analysts raised their price targets following the news, at least five lowered their targets -- though all the marks were north of last night's settlement price at $839.95. That said, the shares have been rock-solid long term, adding 56.6% year-over-year. Options traders have understandably been bullish, while short sellers have been heading to the exits -- leaving just 1.5% of AMZN's total float sold short.
FireEye Braces For Record Lows
FEYE is heading for a 20% drop out of the gate -- and a move into record-low territory -- even though the company's quarterly loss was narrower than forecast. At the same time, the firm's quarterly revenue dipped for the first time ever, its current-quarter billings outlook failed to meet expectations, and a pair of top executives announced their departure. Adding to the pressure, at least 11 brokerage firms slashed their price targets on FEYE, which ended Thursday at $12.97. This is more of the same for the analyst community, which has doled out 16 "hold" or "strong sell" recommendations -- more than doubling seven "strong buys."
GoPro Burned By Revenue, Guidance
GPRO is feeling the heat, with the company's lackluster revenue and guidance overshadowing an earnings beat. As a result, the stock is set to plunge 9.5% at the open, landing it back in single-digit territory after yesterday's close at $10.97. Making matters worse, Raymond James dropped its opinion to "underperform" from "market perform," while at least four analysts trimmed their price targets. Today's potential plunge should sit well with short sellers. Nearly one-third of GPRO's available float is sold short, representing two weeks' worth of trading, at the stock's typical daily volume.
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