Tesla's Biggest-Ever Quarterly Loss; Plus, 2 Stocks Sinking on Weak Forecasts

FEYE and GPRO are tanking after the companies' current-quarter outlooks missed estimates

Nov 2, 2017 at 9:37 AM
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Analysts are weighing in on electric carmaker Tesla Inc (NASDA:TSLA), cybersecurity stock FireEye Inc (NASDAQ:FEYE), and camera company GoPro Inc (NASDAQ:GPRO). Here's a quick roundup of today's bearish brokerage notes on TSLA, FEYE, and GPRO.

Tesla Posts Biggest-Ever Quarterly Loss

Tesla stock is down 6.1% to trade at $301.22 -- territory the shares haven't visited since April -- after the electric carmaker posted its biggest quarterly loss ever and pushed back its production target for its new Model 3 sedan. As such, at least four brokerage firms cut their price targets, including Goldman Sachs to $205 from $210, saying the stock will continue to "de-rate" in light of the disappointing third-quarter results.

TSLA shares are now pacing for their first close below their 200-day moving average since last December. The security could sink lower if additional price cuts and downgrades come through, too, as one-third of the analysts following TSLA still rate it a "buy" or better.

FireEye Stock Sinks on Weak Forecast

Despite posting a smaller-than-expected third-quarter loss and strong sales, FireEye stock is trading 7.8% lower at $15.10, after the company's current-quarter forecast missed estimates. As a result, J.P. Morgan Securities and BMO each slashed their respective price targets to $16 from $17, and Wedbush cut its price target to $14 from $15. Meanwhile, Susquehanna upped its price target to $18 from $17 -- the site of the shares Oct. 10 annual high.

Ahead of the earnings event, options traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) were upping the bullish ante, as evidenced by the equity's 10-day call/put volume ratio of 7.37 -- in 70th annual percentile. In other words, options players bought to open more than seven FEYE calls for every put in the past two weeks. 

GoPro Shares Tank on Weak Holiday-Quarter Forecast

A third stock trading lower on the charts this morning is GoPro, last seen down 15.6% at $9.01, after the company's holiday-quarter forecast missed estimates. Following the results, Citigroup cuts its price target to $10 from $11. This just extends what's been a volatile few months on the charts for the security, though for now it remains safely above its 52-week low of $7.14 from March.

Still, shorts are likely cheering today's decline, as short interest grew 21.6% during the two most recent reporting periods to 30.69 million shares. Short interest now accounts for more than 30% of the equity's total available float, or 4.4 times its average daily trading volume.

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