In this article, we discuss the top 5 losers on Tuesday. If you want to check out some other stocks losing value today, go directly to Top 10 Losers on Tuesday.
5. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 44
Zoom Video Communications, Inc. (NASDAQ:ZM) delivered mixed results for its fiscal second quarter. Moreover, its financial outlook for the current quarter missed estimates, sending its shares down about 12 percent in pre-market trading Tuesday.
The communications technology company earned $1.05 per share on an adjusted basis, down from $1.36 per share in the year-ago period. Revenue for the quarter rose 8 percent on a year-over-year basis to $1.10 billion. Analysts expected Zoom Video Communications, Inc. (NASDAQ:ZM) to earn 94 cents per share on revenue of $1.12 billion.
Looking forward, Zoom Video Communications, Inc. (NASDAQ:ZM) projected adjusted earnings in the range of 82 – 83 cents per share and revenue between $1.095 – $1.100 billion for its fiscal third quarter. This compares to the consensus of 91 cents per share for earnings and $1.15 billion for revenue.
4. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 54
Shares of Medtronic plc (NYSE:MDT) fell nearly three percent this morning after releasing its fiscal first-quarter results. The medical device company reported adjusted earnings of $1.13 per share, marginally above the consensus of $1.12 per share.
Revenue for the quarter decreased 7.7 percent on a year-over-year basis to $7.4 billion but surpassed the expectations of $7.22 billion. Medtronic plc (NYSE:MDT) also disclosed its segment-wise sales results.
Revenue from the Cardiovascular segment slipped 6 percent to $2.713 billion, Medical Surgical revenue fell 14 percent to $2.001 billion and Neuroscience revenue decreased 4 percent to $2.115 billion in the quarter.
For its fiscal year 2023, Medtronic plc (NYSE:MDT) continues to expect adjusted earnings in the range of $5.53 – $5.65 per share and organic sales growth between 4 – 5 percent.
3. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 69
Shares of Twitter, Inc. (NYSE:TWTR) slid over four percent in the pre-market trading session today. The drop came after multiple news agencies published reports, stating serious allegations by Twitter’s ex-security head Peiter Zatko.
According to Zatko, Twitter, Inc. (NYSE:TWTR) faces major security issues, posing a risk to the personal data of users on the platform. In addition, the microblogging site has misled regulators over the platform’s safety and fake accounts, according to Zatko. Zatko also said that senior executives at Twitter, Inc. (NYSE:TWTR) lack the resources to completely understand the actual number of fake accounts on the site.
The latest revelations are expected to hurt Twitter, Inc. (NYSE:TWTR) in the legal row against Elon Musk, who has accused the social network of hiding information about fake accounts. The two parties will soon face each other in a court trial.
2. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 70
Shares of Pfizer Inc. (NYSE:PFE) slipped nearly two percent in mid-day trading Tuesday after the pharmaceutical giant announced that its vaccine is 73.2 percent effective in preventing coronavirus in young children.
The effectiveness percentage disclosed by Pfizer Inc. (NYSE:PFE) and BioNTech today was slightly lower than previous efficacy of 80.3 percent. The drop in efficacy apparently dragged down Pfizer shares this morning.
Pfizer Inc. (NYSE:PFE) studied 34 coronavirus cases in the latest study, compared to just 10 in the previous analysis. Back then, FDA also pointed towards the small number of participants in the trial, saying the cases were not enough to assess the efficacy of the vaccine.
Speaking on the development, CEO of Pfizer Inc. (NYSE:PFE), Albert Bourla, said:
“Building on the strong safety and immunogenicity data that led to FDA authorization of our COVID-19 vaccine for children 6 months through 4 years, we are pleased to share confirmatory evidence that a full course of vaccination helps protect against symptomatic disease, particularly during a time when the Omicron BA.2 strain was predominant.”
1. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 71
Shares of Workday, Inc. (NASDAQ:WDAY) slightly moved down after the opening bell on Tuesday. The drop came after OTR Global lowered its ratings for the enterprise cloud applications provider from “Positive” to “Mixed.” The research firm said it found decelerating momentum in the second quarter following its checks with partners.
The downgrade came just ahead of the company’s Q2 results. Workday, Inc. (NASDAQ:WDAY) is set to release its earnings report after the close of market on Thursday, Aug 25, 2022.
Earlier this year, investment management firm ClearBridge Investments also mentioned Workday, Inc. (NASDAQ:WDAY) in its fourth-quarter 2021 investor letter, stating:
“We believe the weakness created an opportunity for us to add to an exceptionally high-quality payments franchise with an attractive growth and free cash flow profile and little credit or interest rate exposure. It also supported our efforts to maintain diversified IT exposure in a narrowing market; additions to our software-as-aservice (SaaS) holding Workday during the quarter also bolstered this diversification, in which we seek to balance exposure to more widely owned mega cap names…”
You can also take a peek at Jim Cramer Recommends These 10 Stocks For Recession and 10 Best Cyclical Stocks for Inflation.
