Snap posted its third straight earnings miss and slowing growth in active daily users
Analysts are weighing in on mobile camera application Snap Inc (NYSE:SNAP), biotech TESARO Inc (NASDAQ:TSRO), and apparel and accessories stock Fossil Group Inc (NASDAQ:FOSL). Here's a quick roundup of today's bearish brokerage notes on SNAP, TSRO, and FOSL.
Snap Shares Plunge on Third Straight Earnings Miss
Snap stock is down 11.6% to trade at $13.37, after the Snapchat parent reported its third straight earnings miss. The company's third-quarter daily active users growth also came in below estimates. As such, a flood of downgrades and price-target cuts followed, including a downgrade to "sell" from "neutral" at UBS, which slashed its price target to $7 from $12, and a downgrade to "hold" from "buy" at Stifel, which cut its price target to $13 from $18.
In light of the dismal earnings reports, Snapchat says it's redesigning the application to "make it easier to use," a process it claims will most likely be "disruptive" to the business in the short term, but provide substantial long-term benefits. Thus, SNAP shares could see additional downgrades and price-target in the near term, as six analysts still rate the stock a "buy" or better.
TESARO Stock Sinks to Fresh Low After Earnings
TESARO shares also down this morning, last seen trading 10.7% lower at $100.05 and earlier touched an annual low of $97.20, even though the biotech posted a smaller-than-expected third-quarter loss. Following the results, at least five analysts cut their price targets, including Baird, to $120 from $125.
TSRO stock had already been on a steady decline since touching an all-time high of $192.94 on Feb. 21. In light of the security's recent price action, short-term traders have favored puts relative to calls. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.07 ranks in the 82nd percentile of its annual range, indicating near-term traders have rarely been more put-heavy during the past 12 months.
Fossil Shares Hit 16-Year Low on Weak Forecast
Fossil stock sank to a 16-year low of $6.13 earlier, and was last seen down 8.4% at $6.28, after the company's full-year forecast missed estimates. As such, KeyBanc, Telsey Advisory, and Jefferies issued price-target cuts, with the latter setting the bar the lowest at $6.
FOSL shares have nosedived in 2017, losing almost one-fourth of their value even before today's slide. Shorts are likely cheering today's drop, as short interest grew 7.3% during the most recent reporting period to 14.35 million shares, or nearly 35% of the stock's total available float. It would take more than seven sessions to cover these shorted shares, at the equity's average daily trading volume.