Wall Street celebrated good news on Tuesday as the Dow and other major benchmarks reached record levels yet again. Washington provided a lot of the impetus for upward movement among stocks, as testimony from the Fed's Jerome Powell in confirmation hearings to become the next chair of the central bank went well and tax reform efforts continued apace. Still, there were some less-than-ideal events that conspired to send some individual stocks lower. Momo (NASDAQ:MOMO), Aratana Therapeutics (NASDAQ:PETX), and Sea Limited (NYSE:SE) 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.
Momo takes a hit
Shares of Momo fell 19% after the Chinese social networking platform provider released its third-quarter financial report. At first glance, the company's results looked extremely strong, including revenue that more than doubled from year-ago levels and a near-doubling in adjusted net income. Momo also said it expects growth to continue this quarter, with sales growth expectations of at least 50%. Yet as those who follow the stock have seen in past periods, Momo shareholders seem to believe that extensive share-price gains prior to the report warranted a pullback. In the long run, Momo's fundamentals still seem sound.
Aratana's secondary offering
Aratana Therapeutics stock dropped 19% in the wake of the company's announcement of a secondary stock offering. The pet-focused biotechnology specialist said that it would sell $35 million in stock, choosing not to specify a number of shares and emphasizing that it couldn't offer details on the final size or other terms of the offering. After a strong 2016, Aratana has struggled this year, and investors appear to be quite worried that the company's need to raise capital will result in significant dilution for existing shareholders. Those concerns seem justified, given that the $35 million it's raising will represent almost 15% of Aratana's current market capitalization.
Sea Limited deals with disappointment
Finally, shares of Sea Limited fell nearly 10%. The Singapore-based digital entertainment and e-commerce specialist has had a rough time since its late October initial public offering, falling below its $15-per-share IPO price quite quickly after the stock started trading on the New York Stock Exchange. Part of the concern among investors likely comes from its third-quarter financial results, which came out last week and included a substantial loss. Yet adjusted revenue figures showed solid growth, and despite today's declines in the stock, it's too early to count Sea out just yet.