Today's 3 Worst Stocks

Ever jumped for joy at the newest figures from the Department of Commerce? Be honest. You haven't? Well, Wall Street sure has, and it sure did today. While not exactly reflected in the S&P 500 Index's (SNPINDEX: ^GSPC  ) 1.7 point, or 0.1% gain on the day, considering some of the bearish catalysts, eking out small gains doesn't seem so bad. During the early stages of what could be another debt limit crisis getting under way, December's 0.5% retail sales increase was enough of a positive surprise to prevent widespread selling. Unfortunately, the following three S&P 500 stocks didn't get the memo.

Apple (NASDAQ: AAPL  ) , which for a second straight day numbered among the worst performers in the index, slipped a further 3.2% after a 3.5% decline Monday. It's part of a larger, disturbing short-term trend in Apple's stock price: The iPhone maker is down nearly 25% in just the last three months. The steep losses, aggravated yesterday by rumors that it ordered far fewer iPhone 5 components than expected, don't hugely dint the stock's longer-term performance, though. Patient shareholders are up nearly 290% in the past five years. 

Stock in service provider Windstream (NASDAQ: WIN  ) , which also offers cloud computing, similarly nosedived today, falling 2.8%. Frankly, I don't blame investors; the finances look terrible. The company has six times more long-term debt than equity -- no wonder it's been expeditiously refinancing all the debt it can recently. And the company's 10% dividend would be a lot more attractive if it weren't eating up all the yearly profits four times over each annum

Online streaming content provider Netflix (NASDAQ: NFLX  ) rounds out the last of today's laggards, having fallen 1.7%. Today's news that it had acquired rights from Time Warner's Turner Broadcasting and Warner Brothers Television Group, though ostensibly a good move, scared away investors. The terms of the multiyear deal weren't disclosed, and Netflix's immediate decline could reflect investors' dissatisfaction with a business strategy heavily dependent on content acquisition. 


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2198001, ~/Articles/ArticleHandler.aspx, 11/27/2014 8:25:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement