Volatility is king right now. Options traders are reaping in either big gains or losses, whilst regulatory risk has the whole investing world from NYC to London scratching their heads. There have been some major swings in previously trending stocks and winners of beaten down stocks. Perhaps one of the biggest losers has been Under Armour, the company boasted expectations last year of close to 20% growth. Currently these numbers are barely scratching 7% and the company has fallen nearly by half in the past six months, compared to the Dow Jones Index’s 10%+ gain. Under Armour’s growth multiplier has been slashed and added to Adidas which has been growing in the North American market and is now in growth mode. Michael’s is an arts and crafts retailer that is struggling as well. The company fell nearly 20% in a couple months before rebounding a couple percent, but this marks a slowdown for the relatively new public company that has been bullish since its IPO. Gilead is the third company that is doing particularly poorly given the company’s history of being loved by analysts. The whole biotechnology industry has been sluggish, especially with pricing concerns among regulators. With scrutiny under Mylan, and many more controversies in the previous year’s such as Shkreli, negative PR has finally resulted in share reductions.
Not all stocks have turned bearish, in fact some companies that were flat are now doing extremely well. One of these is Yelp, who is seeing better numbers on their financial statements as well as a possible unicorn from Eat24, a subsidiary of theirs that they acquired. Couple this with Einhorn’s big bet on the company, and now the company is loved by Wall Street. Apple has been killing it after investment from Wall Street had slowed to now break all-time highs in the $130’s. This has hushed some criticism that Tim Cook has been receiving as being worth only for the operation and not the executive side. Lastly, Bank of America is one of the most well-known stocks that has just been killing it. From being in a horrific condition post Great Recession, to stuck between $11-$14 for years, the company is in breakout mode with no stop in end. BofA is the lighthouse for the rest of the financial world leading the gains for other companies from American Express to Silicon Valley Bank.
Regulation is what investors will be looking at as well as any changes in policy following the earnings turbulence.