This week we look at a list of companies that are consistently at the bottom of their respective games.
Twitter (NYSE:TWTR) | Social Media: Shares cratered last week after every potential suitor withdrew their bid to acquire the social-media company. It's widely believed that Twitter is overvalued at a $15+ market cap given its dwindling user base and spotty financials. The company is not even in the top 3 when it comes to DAU and MAU; Facebook (NASDAQ:FB), Instagram and Snapchat are all ahead of Twitter. With no clear bidder in sight, Twitter will be left to its own devices. This means earnings and revenue will continue to struggle while shareholders jump ship. Forcerankers initially pushed Twitter down to the 5th spot after Disney (NYSE:DIS), Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL) retreated. The Salesforce.com (NYSE:CRM) withdrawal last week was the final straw that sent this thing to the bottom of the social-media sphere. Shares are down nearly 12% in the past 30 days as we head into the heart of earnings season.
Wells Fargo (NYSE:WFC) | Financials: Wells Fargo is nearly a month removed from the initial report that detailed the fake-account scandal. It was that report that put the bank in the hot seat and caused CEO John Stumpf to step down from his role with the company. Shares are down 17% year to date and should continue to decline as customers are still up in arms about the fiasco. In a recent conference call, following its quarterly report, interim CEO Tim Sloan didn’t appear to do enough to appease analysts or investors. Sloan was a high-ranking member of the company when the fraudulent practices occurred and should assume similar culpability as Stumpf. Many experts don’t believe a promotion is appropriate given that Sloan was likely aware of the actions occurring at the branch level.
Check Point Software (NASDAQ:CHKP) | Large Enterprise Software: The cyber-security sector was dealt a major blow last week when Fortinet (NASDAQ:FTNT) cited waning demand for its weak results. Fortinet mentioned less of an urgency on the part of consumers to purchase cyber-security products. This is because customers are more aware of digital threats than they had been in previous years. If that is indeed the case, it wouldn’t be surprising to see a broader pullback in the sector as we head into earnings season. This is a space that had been decelerating, so any additional hurdles could be devastating. Checkpoint shares are trading lower in the past 6 months. A recent bearish crossover in the MACD and an earnings report on the horizon spells trouble for shareholders.
Box (NYSE:BOX) | Small Enterprise Software: Box is one of the most beaten-down stocks since its IPO in 2015. Shares are down more that 35% largely due to slowing revenue growth and continually taking a loss. The company has started to trend up over the past 3 months but shareholders aren’t convinced this is a sustainable trend. Box is still in the maturation process and must go through these ups and downs before reaching a stable point. That typically doesn’t happen overnight, which means investors should remain cautious when trading the stock. Meanwhile, a plunging OBV and a bearish crossover in the MACD signal a downturn over the next few weeks. Box was the second-lowest stock in this week’s contests just behind Tableau (NYSE:DATA). What’s most interesting is that its average user ranking dropped from 6 for the week ending Oct. 14 to 6.58 for the current period.
Fitbit (NYSE:FIT) | Most Heavily Shorted: Fitbit, like Box, has been hammered since its IPO in 2015. The company has only recently started to come around, largely due to the success of its two most recent products; Fitbit Alta and Blaze. These products are reportedly flying off the shelves and should help drive results in the quarter to be reported. The only problem is that Fitbit frequently goes through violent up and down shifts. It appears as though we are in that down phase after a bearish crossover in its 200-day MA, negative MACD and plunging OBV. Forcerank users were wise to place this on the bottom as we head into earnings season. Historically, shares decline 7% through the print and as high as 9% 30 days following a report.