RECN - Why GoPro AngioDynamics and Resources Connection Slumped Today
Thursday was a volatile day on Wall Street, but markets generally turned higher by the end of the session. Despite ongoing concerns about the future direction of the U.S. economy, there are still a number of factors pointing toward continued expansion and a low chance of a recession in the immediate future. Even so, bad news hit some individual companies, sending their shares down. GoPro (NASDAQ: GPRO), AngioDynamics (NASDAQ: ANGO), and Resources Connection (NASDAQ: RECN) were among the worst performers. Here's why they did so poorly.
Shares of GoPro sank 19% after the action-camera maker warned that it would suffer production delays for one of its new product releases. The company had just announced its HERO 8 Black camera for the holiday season, but a late-stage hiccup in the process means that GoPro will have to ship the new product in the fourth quarter rather than in the third quarter. As a result, GoPro cut its revenue growth projections by 3 percentage points, setting a new range of just 6% to 9%. Given how optimistic investors were about the release, news of the delay crushed morale for many of those following the stock.
Image source: GoPro.