Friday was a rebound day for the stock market, with major benchmarks swinging back and forth between big gains and losses before settling on a finish in positive territory. The Dow closed the day with a 330-point gain, and other key indexes matched its roughly 1.5% rise. Yet the boost couldn't wipe out the impact of two 1,000-point-plus drops during the week, and many stocks lost even more ground on Friday despite the overall market's comeback. Zynga (NASDAQ:ZNGA), Sierra Wireless (NASDAQ:SWIR), and Lions Gate Entertainment (NYSE:LGF.A) (NYSE:LGF.B) 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.
Zynga can't win
Shares of Zynga finished down 5% as investors continued to parse through the mobile video game company's quarterly earnings report released earlier this week. Zynga had originally climbed after announcing record mobile revenue and bookings, which were higher by 32% and 18%, respectively, on a year-over-year basis. The launch of Words With Friends 2 and strong showings from Zynga Poker and other titles helped contribute to the gains. Yet after such a strong 2017, Zynga investors seem nervous about the sustainability of further share-price gains without even stronger fundamental business performance. Until that happens, Zynga shares could see ongoing choppiness.
Sierra Wireless disconnects
Sierra Wireless stock fell 14% after the technology company reported its fourth-quarter financial results. The Internet of Things specialist said that revenue climbed 13% from year-earlier levels, with particular strength not just in the IoT segment but also in serving enterprise customers more broadly. Yet despite assurances from CEO Jason Cohenour that future gains in recurring revenue are imminent, Sierra Wireless investors weren't satisfied with the pace of growth suggested in the company's guidance for the current quarter. The company will have to show that it can overcome temporary headwinds before some shareholders will feel confident in its long-term prospects.
Lions Gate can't satisfy investors
Finally, shares of Lions Gate dropped 13%. The entertainment and content provider reported strong sales gains and free cash flow growth, with solid earnings that exceeded expectations for most investors. Yet Lions Gate said it would probably take a year longer than it had initially projected to complete the company's expansion plans for its legacy businesses as well as the new businesses it got when it merged with Starz in late 2016. Bullish investors hope that the sacrifice in fiscal 2019 will pay off with heightened returns in fiscal 2020, but the stock's movement today suggests that more pessimistic investors who doubt the company's long-term strategy carried the argument, at least for now.