Why Splunk, Infoblox, and Lions Gate Entertainment Tumbled Today

Major stock market benchmarks hit all-time record highs Friday, but these three stocks got the short end of the stick.

May 30, 2014 at 8:35PM
Longview

The stock market went into the weekend with unbridled enthusiasm, as major market benchmarks reached unprecedented heights yet again. For now, investors are riding the wave of optimism about the sustainability of the bull market higher, but not every stock managed to gain ground on Friday. Among the biggest losers were Splunk (NASDAQ:SPLK), Infoblox (NYSE:BLOX), and Lions Gate Entertainment (NYSE:LGF).

Splk

Source: Splunk.

Splunk dropped 16%, as even solid growth from the maker of enterprise data analytics software failed to satisfy the high demands of shareholders. Revenue jumped 50% from year-ago levels, with a narrower loss than investors had expected from Splunk. Yet even though Splunk also gave guidance that was roughly in line with what analysts had already predicted, investors reacted negatively to the perceived slowdown in Splunk's growth trajectory and its failure to become profitable as quickly as they had hoped. With investors uncertain about how long the big-data opportunity will last, Splunk needs to move faster in order to satisfy skeptics that it can take advantage of the popular trend in tech.

Infoblox plunged 37% as the maker of network equipment suffered two major setbacks. First, the company's earnings report left much to be desired, with revenue rising just 5% from the year-ago quarter and adjusted earnings falling by more than 25%. Moreover, Infoblox's guidance for the current quarter and for the full 2014 fiscal year came in weaker than investors had expected to see. Perhaps even more troubling, though, is the fact that CEO Robert Thomas will leave Infoblox once the company finds a successor. Given the competitive pressures facing the networking industry right now, Infoblox will have a tough time finding a replacement to lead the company forward and generate the growth that shareholders expect.

Lgf
Source: Lions Gate Entertainment.

Lions Gate Entertainment fell almost 12% after the movie and television production company reported an 8% drop in revenue for the quarter. Earnings also fell short of what investors had expected to see, and even news that the company will move forward with a traveling tour and theme park related to its blockbuster Hunger Games franchise wasn't enough to send shares higher. The bigger question for Lions Gate is whether the third and fourth Hunger Games movies, as well as future releases based on its Divergent franchise, will live up to the high expectations investors have. If they do, then the odds will definitely be ever in Lions Gate's favor.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names.

 

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Lions Gate Entertainment. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers