Top tech and entertainment stocks struggling early in 2014
Best Buy (BBY) had a holiday hangover Thursday as after reporting disappointing sales figures over the holidays, their stock dropped by almost 30%.
Now, the drop still leaves the retailer’s stock quite a bit higher than where it started last year, thanks to a huge 237% gain over 2013, but that’s still a precipitous drop for any business, let alone one that depends on holiday sales as much as a retailer.
Netflix (NFLX), which was 2013’s biggest gainer, is also in a post-holiday slump, having dropped over 10% this year so far. Most of the falling price has been related to investors believing that subscriber growth has peaked and will continue to slow. There are also worries about whether recent court rulings related to net neutrality might cause Internet service providers to charge “tolls” to Netflix for using so much bandwidth.
Twitter (TWTR) is a 2013 standout that many were already doubting before the calendar flipped over, and sure enough, Twitter’s shares are down 5% so far this year. The problem is that this small decline is just part of a bigger one that started in December, which has led to a 20% skid since reaching an all-time high. Many are expecting bad news from Twitter’s earnings report early next month, too.
Finally, GameStop (GME) has fallen by almost 25% in 2014 after doubling when new consoles and a big fall lineup of games helped to engender some optimism for the new and used video game retailer.
Are these stocks suffering from worries about the mythical stock bubble arriving, or is it about the individual weaknesses of each? Only time will tell.