Why Macy’s Inc. (M) Went Down On Friday?

We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where Macy’s Inc. (NYSE:M) stands against other Friday’s worst performing stocks.

Wall Street’s main indices bounced back on Friday, erasing the entire week’s losses, as investor hopes were fueled by news that no government shutdown is happening.

The tech-heavy Nasdaq jumped the highest on Friday, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, on the other hand, bucked an overall market optimism, posting modest losses during the day.

In this article, we have named the day’s worst performers and detailed the reasons behind their drop.

To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.

A customer in a store trying on fashionable apparel and accessories for purchase.

Macy’s Inc. (NYSE:M)

Macy’s share prices declined for a second straight day on Friday, losing 2.81 percent to close at $13.08 apiece as investors sold off positions following news that it officially started its plan of closing 150 stores over the next two years following plummeting sales, coupled with a change in consumer behaviors and preferences.

The store closure was part of its “A Bold New Chapter” plan, which includes a shift to chasing wealthier shoppers with its higher-end brands, including Bloomingdale’s and Bluemercury.

As of Friday, the company’s stock price was just 3.8 percent shy of its 52-week low of $12.60.

Macy’s CEO Tony Spring said earlier that closing stores is never easy, but the locations chosen were underproductive for its so-called Bold New Chapter strategy.

For this year alone, around 66 stores are expected to shut down albeit the locations have not been disclosed. The company is currently offering closing-store promotions across various stores.

Overall, M ranks 7th on our list of Friday’s worst performing stocks. While we acknowledge the potential of M as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as M but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.