[ad_1]
Monday was an ugly day on Wall Street, with the Dow Jones Industrial Average and S & P 500 both progress quickly before falling abruptly at the end of the session. The main benchmarks recorded losses ranging from 1% to 1.6%, as particularly difficult conditions penalized the market. Nasdaq Composite. The new fears of a trade war with China seem to be materializing and the political and macroeconomic uncertainties are causing many investors to fear that the nearly ten-year-old bull market is coming to an end. Adding to this moody mood, there was news that investors took negatively from several key companies. Amazon.com (NASDAQ: AMZN), Tilray (NASDAQ: TLRY), and Denbury resources (NYSE: DNR) were among the worst performers of the day. Here's why they hurt so badly.
Amazon faces a new tax
Shares of Amazon.com fell 6% after the UK government announced a new tax on big tech companies. Designed to prevent the giant of e-commerce and other large companies from making profits in the UK and escaping the tax burden abroad, the digital service tax would impose a 2% sales rate. While waiting for the tax to generate between £ 275m and £ 400m per annum, Amazon investors seem to fear that a new trend may threaten its efforts to expand internationally, even as she seeks to increase revenue streams such as advertising growth.
Source of the image: Amazon.
Tilray: cannabis shortage
Tilray shares plunged 16% on a bad day for marijuana shares in the market. Reports from Canada show that marijuana shortages are hurting sales after the legalization of recreational cannabis products in the country a few weeks ago. Key provinces such as Ontario and Quebec were particularly affected and some customers complained not only of the speed of deliveries and the cancellation of orders, but also of the quality of the products delivered. Given the importance of Canada as a pioneer among industrialized countries to legalize marijuana, any impediment to effective cannabis deployment is bad news for Tilray and her peers.
Denbury makes a bargain
Finally, Denbury Resources shares fell by 24%. The Texas-based energy company announced Sunday night the acquisition of Penn Virginia (Nasdaq: PVAC) in a deal of $ 1.7 billion. Under the terms of the acquisition, Penn Virginia investors will receive $ 25.86 in cash plus 12.4 Denbury shares for each Penn Virginia share they own. Denbury CEO Chris Kendall called the deal a "defining moment," noting that Penn Virginia's strengths in the valuable Eagle Ford game contributed to his overall strategic vision. However, investors are worried that Denbury's attempt to diversify its exposure will not be able to backfire, if it fails to adapt quickly, especially with the drop in crude oil prices of $ 1 per barrel today. # 39; hui.
John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Dan Caplinger has no position in the mentioned actions. The Motley Fool owns shares and recommends Amazon. Motley Fool has a disclosure policy.
[ad_2]
Source link
