Thursday was a good day on Wall Street, as investors were pleased to see many high-profile companies in the U.S. report positive earnings results. Geopolitical concerns also worked in the stock market's favor, with the U.K. and the European Union apparently agreeing to a deal that would allow Brexit to move forward on terms acceptable to both parties. However, some individual companies weren't able to share in the major becnhmarks' gains. IBM (NYSE:IBM), Extraction Oil & Gas (NASDAQ:XOG), and Syros Pharmaceuticals (NASDAQ:SYRS) were among the worst performers. Here's why they did so poorly.
IBM sings the Big Blues
Shares of IBM fell 5.5% following the technology giant's release of third-quarter financial results. The company also known as Big Blue saw adjusted earnings per share slump 22% from year-earlier levels, but that number was actually better than many investors had expected. The disappointment came on the top line, where a 4% drop in revenue year over year fell short of what shareholders wanted to see. Contributions to growth from the recent acquisition of Red Hat haven't been as large as many had hoped, with revenue from the cloud and cognitive software segment rising just 8%. IBM will have to mount a more forceful recovery if it wants to regain the confidence of its investors, who appear to be losing patience with the length of time it's taken Big Blue to find a new strategic vision.
Extraction gets thumbs-down
Extraction Oil & Gas saw its stock drop nearly 8% after the energy company got negative comments from analysts. Professionals at Imperial Capital cut their rating on Extraction from outperform to underperform, and they slashed their price target on shares from $7 all the way down to $2. Imperial is concerned that the company is facing larger challenges than many of its counterparts with assets in the Denver-Julesburg basin in Colorado. Oil and natural gas prices aren't really cooperating with independent exploration and production companies either, and that leaves Extraction especially vulnerable to further pressure in the energy markets or unplanned problems in its drilling operations.
Syros gets bad news
Finally, shares of Syros Pharmaceuticals plunged 31%. The gene-expression specialist announced that it would discontinue the development of its CDK7 inhibitor SY-1365 in favor of its alternative SY-5609 treatment, which is taken orally instead of by injection. Syros said that SY-5609 is stronger and more selective in inhibiting the CDK7 enzyme, and the oral treatment provides more flexibility in setting and maintaining dosages. CEO Dr. Nancy Simonian emphasized that Syros has learned a lot from SY-1365, but giving priority to SY-5609 reflects its "best-in-class potential." Investors didn't seem to agree, and the stock's move reflects the disappointment that shareholders will have to wait until early 2020 for a planned phase 1 trial of SY-5609 to begin.