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Wednesday was a big day for the stock market, with the Dow Jones Industrial Average jumping more than 500 points following the mid-term elections. Investors seemed pleased with the results of the contest, which included the Republicans' continued control of the Senate, but the majority of Democrats in the House of Representatives. Yet, even in the festive mood of Wall Street, some companies have had bad news that have dropped their stock. Zillow Group (NASDAQ: Z) (NASDAQ: ZG), Match Group (NASDAQ: MTCH), and Michael Kors Holdings (NYSE: KORS) were among the worst performers of the day. Here's why they hurt so badly.
Zillow gives disappointing advice
Zillow Group shares plunged 27% after the provider of the online real estate platform reported its third quarter financial results. The performance of the period looks encouraging, including a 22% increase in sales and an all-time record of 195 million unique users in the summer months. But investors are not happy with Zillow's forecasts in the near future. In fact, worries about advertiser churn, rising expenses and fears that rising interest rates will end the long-term bull market in the real estate market have led the company to post operating profit and adjusted operating income before taxes for the remainder of the year. If housing starts were heading south, Zillow could see key sources of revenue contributing to it.
Source of image: Zillow Group.
Investors fall in love with Match
Match Group shares fell by 17%, despite seemingly strong results from the online dating specialist in the third quarter of 2018. According to Match, the total business turnover climbed 29%, the number of subscribers to its services amounted to 8.1 million and adjusted operating income before tax increased by 38% compared to the corresponding quarter of the previous year. In addition, the Tinder operator has declared a special dividend of $ 2 per share payable next month. Yet, investors were expecting a lot of Match in the report and the company's sales forecasts have raised fears that it will not be able to maintain the growth rate that shareholders take for granted from Match.
Kors hits hard
Finally, the shares of Michael Kors Holdings ended down 15%. The luxury retailer presented results for the second quarter of its fiscal year opposite to those of Zillow and Match: optimistic outlook, financial performance below average for the period considered. Last year's acquisition of Jimmy Choo contributed to some growth in sales, but the segment of the same name, Michael Kors, had lower sales and comparable sales figures. Even a rise in earnings guidance for the remainder of 2018 was not enough to dispel the fears that Kors' recent takeover bid for Versace is too distracting for the need to focus on optimizing the retailer's business. luxury. has already.
Dan Caplinger has no position in the mentioned actions. Motley Fool owns shares and recommends Zillow Group (A shares) and Zillow Group (C shares). Motley Fool owns shares in Michael Kors Holdings. The Motley Fool recommends Match Group. Motley Fool has a disclosure policy.
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