Please ensure Javascript is enabled for purposes of website accessibility

Why Tilray, Goodyear Tire & Rubber, and PG&E Slumped Today

By Dan Caplinger - Updated Apr 18, 2019 at 10:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Some companies just couldn't catch a break.

Tuesday was a solid day on Wall Street, as major stock indexes generally rose modestly. Investors seemed to look forward to the coming earnings season, even though results from some high-profile early reporting companies weren't quite as good as most had hoped. Even amid positive sentiment, some companies suffered bad news that caused their shares to miss out on the rally. Tilray (TLRY), Goodyear Tire & Rubber (GT 3.65%), and PG&E (PCG 1.30%) were among the worst performers. Here's why they did so poorly.

Tilray sinks as early investors sell out

Check out the latest Tilray earnings call transcript.

Shares of Tilray dropped 17% as the marijuana producer's six-month lockup period expired. Following the company's initial public offering, key institutional investors weren't allowed to sell their shares immediately. That's a common provision for IPOs to help support share prices, but the lockup is designed to last for a limited period of time, and today's sell-off suggests that several investors took advantage of the expiration. Even so, news late last week that key investor Privateer Holdings would not sell despite the lockup expiration likely prevented an even bigger drop, and many remain optimistic about the cannabis company's long-term prospects.

Two-story building with Tilray logo on it, next to empty parking lot.

Image source: Tilray.

Goodyear hits the skids

Check out the latest Goodyear Tire & Rubber earnings call transcript.

Goodyear Tire & Rubber's stock fell 13% after the tire maker cut its guidance for its fourth-quarter results. In a filing with the U.S. Securities and Exchange Commission, Goodyear said that tire volumes in 2018 were down about 3%, held back by weakness in China, India, and Europe, as well as supply constraints in the U.S. market. Because of the shortfall, Goodyear now expects net income to come in below the $1.3 billion that it had initially forecast. Given that the the company has come off a terrible 2018, this wasn't the way Goodyear wanted to start the new year.

PG&E keeps losing ground

Check out the latest PG&E earnings call transcript.

Finally, shares of beleaguered utility PG&E lost 17.5%. The move just added to the more-than-50% hit the stock took Monday following PG&E's announcement that it would seek bankruptcy protection, and today, the utility chose not to make a roughly $22 million interest payment on a series of senior debt obligations. The news shows that despite their reputation for being safe investments, even utilities have risk -- and many major institutional investors are learning the hard way that even prominent players in the industry like PG&E could suffer devastating losses as a result of its responsibility for damages in California's latest wildfires.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Goodyear Tire & Rubber Company Stock Quote
The Goodyear Tire & Rubber Company
GT
$15.05 (3.65%) $0.53
PG&E Corporation Stock Quote
PG&E Corporation
PCG
$12.06 (1.30%) $0.15
Tilray Stock Quote
Tilray
TLRY

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.