The 2 Worst Stocks on the Nasdaq Today

GoPro supplier Ambarella stock is touching new lows

Managing Editor
Sep 1, 2017 at 10:06 AM
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Analysts are weighing in on technology distributor Tech Data Corp (NASDAQ:TECD), GoPro supplier Ambarella Inc (NASDAQ:AMBA), and retail stock Fred's, Inc. (NASDAQ:FRED). Here's a quick roundup of today's bearish brokerage notes on shares of TECD, AMBA, and FRED.

Earnings Miss Fries Tech Data

Tech Data is down 19% to trade at $89.28 -- the biggest percentage loser on the Nasdaq today -- after the company's second-quarter earnings and current-quarter guidance fell short of expectations. The earnings miss was met with a price-target cut to $110 from $115 from Stifel.

TECD stock is coming off a record high of $111.10 on Wednesday, but has now fallen below its 200-day moving average for the first time since September. Analysts lean bullishly toward the tech stock. Over 57% of the brokerages covering TECD rate the shares a "buy" or better, which could leave Tech Data stock at risk of additional negative notes.

Ambarella Stock Reeling After Guidance

Ambarella stock is down 17% to trade at $45.12 -- and just touched a new annual low of $45.06 -- to emerge as the second-worst Nasdaq loser today. While the GoPro supplier delivered a second-quarter earnings report that topped Wall Street's expectations, it lowered its full-year guidance. Craig Hallum downgraded AMBA stock to "hold" from "buy," and no fewer than four analysts cut their price targets, including to $49 from $54 at Deutsche Bank.

In the options pits, traders have preferred AMBA calls to puts by a wider-than-usual margin. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 10-day call/put volume ratio of 3.57, which is higher than 81% of all other readings from the past year. 

Fred's Stock Hovers Around New Lows

Fred's Inc stock is up 1.4% to trade at $6.00, despite Deutsche Bank cutting its price target to $5 from $7. FRED stock fell to a 17-year low of $5.62 on Aug. 17, and has shed over 68% year-to-date. The shares' 30-day moving average has been a firm ceiling since late June, just before the stock gapped lower on scrapped M&A plans with Rite Aid.

Despite decreasing by 7% during the last reporting period, short interest continues to dominate the landscape for FRED shares. Over 19 million shares are sold short, which accounts for a whopping 72.5% of the stock's total available float. This accumulation represents more than 25 times FRED's average daily trading volume. 

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