The stock market finished the week on a negative note on Friday, and much of the decline came late in the afternoon trading session. After having weathered fallout from the shocking defeat of U.K. Prime Minister Theresa May's Conservative Party in Thursday's elections, major benchmarks started to lose ground, and the Nasdaq Composite eventually fell more than 2% before recovering somewhat in the final minutes of the day. Investors seemed ready for a rotation out of the high-flying tech sector into lagging parts of the market, and that showed up in precipitous declines for some of the best-known stock names late Friday, even as the Dow gained ground. Apple (NASDAQ:AAPL), Rite Aid (NYSE:RAD), and NVIDIA (NASDAQ:NVDA) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Apple falls from the tree
Shares of Apple dropped 4% in the wake of concerns about whether it will be able to deliver on promises for future product launches. Many investors are waiting impatiently for news on the iPhone 8 upgrade, and rumors have surfaced about a potential delay in when the 10th anniversary edition of the groundbreaking mobile device will be released to the public. In addition, a newer report suggested that performance of the iPhone modem could face competitive disadvantages. Yet with Apple stock having climbed so sharply in recent months, it's not surprising to see a quick pullback after a long run higher. Even with today's decline, Apple appears poised to keep benefiting from its popular consumer products for years to come.
Rite Aid gets bad news
Rite Aid stock plunged 15% in the wake of reports that seemed to confirm that the company's proposed acquisition by Walgreens Boots Alliance (NASDAQ:WBA) will not pass antitrust scrutiny. Those following the transaction now believe that the Federal Trade Commission will reject the deal, even after the two companies have worked hard to find ways to address previous concerns and divest substantial parts of their combined store network. Share of both Rite Aid and Walgreens have already responded negatively to anticipation of such a decision, but what's interesting is that Rite Aid shares have now dropped below where they traded before the merger was initially announced. Some might see that as a bargain opportunity, but negative sentiment could carry Rite Aid stock down further before value investors swoop in to take advantage of the cheap shares.
NVIDIA gets a negative review
Finally, shares of NVIDIA finished down over 6%. The high-flying chipmaker found itself the subject of negative comments from short-seller Andrew Left of Citron Research, who said that numerous analyst upgrades have turned the stock into a vehicle for gambling among traders. Although Left acknowledges that NVIDIA's graphic processing chip franchise has substantial growth potential and could help drive further advances for the company as well, potential competition does exist that could hurt NVIDIA's pace of revenue gains going forward. Despite the drop, shares have still tripled in less than a year, and NVIDIA's promise in fast-growing areas like self-driving vehicles could become the catalyst for further long-term gains.