Despite the bearish start to the trading session, the bulls managed to fight their way back, perhaps at least partially inspired by a By the time the closing bell rang, the S&P 500 was up 0.11%, finishing the session at 2099.33.
Not every name sidestepped a bearish day on Wednesday, however. Alibaba Group Holding Ltd (NYSE:BABA), Freeport-McMoRan Inc (NYSE:FCX) and Under Armour Inc (NYSE:UA) just couldn’t get any traction.
Here’s what investors need to know.
Alibaba Group Holding Ltd (BABA)
In the grand scheme of things, it’s nothing unusual. It may even be a prudent way of reducing risk, in fact. Most traders aren’t seeing it in such an optimistic light, however, sending Alibaba Group Holding Ltd shares more than 6% lower in response to news that Japan’s (mostly) telecom and e-commerce holding company SoftBank Group Corp (OTCMKTS:SFTBF) was reducing the size of its stake in BABA.
When Softbank’s chief Masayoshi Son first made a $20 million bet on the fledgling e-commerce site back in 2000, he likely had no idea it would become the behemoth that it has become in the meantime. , but would now like to pare that amount back to only 28%, meaning
.
Aside from the potential dilution, some investors are interpreting Son’s partial exit as a sign that Alibaba’s best days are behind it.
Freeport-McMoRan Inc (FCX)
Take your pick of reasons why Freeport-McMoRan lost more than 4% of its value on Wednesday.
The biggest headwind was provided by falling copper prices; . But, the reason for copper’s meltdown itself contributed to the weakness FCX experienced on its own: On Wednesday, a at the same time the Organization for Economic Co-operation and Development caution cautioned that serious growth headwinds were starting to blow.
Not even reports that Freeport-McMoRan via the sale of a 13% stake in its Sumitomo Metal Mining Co. joint venture were enough to buoy the stock.
Under Armour Inc (UA)
Last but certainly not least, the ripple effect of is finally being felt by it vendors. This even includes the venerable athletic apparel and gear maker Under Armour, which cautioned UA shareholders today that the absence of the Sports Authority venue would likely mean a revenue miss for 2016.
Analysts had been calling for a top line of $5.02 billion, but the company now believes it will .
The news prompted several lowered price targets, but not as many outright downgrades of Under Armour. , while Jefferies cut its target from $45 to $42. Cowen acted most drastically, cutting its target price for UA from $51 to $42.
UA shares ended Wednesday’s trading session at $36.25, down nearly 4%.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
