MFGP - Why Infosys Micro Focus International and Innophos Holdings Slumped Today
Wall Street opened the new week on a largely positive note, with solid gains for most major benchmarks. On the whole, investors were content to see no escalation in trade disputes between the U.S. and China and no additional evidence that the global economy could weaken further. Yet that didn't stop some stocks from losing significant ground on Monday. Infosys (NYSE: INFY), Micro Focus International (NYSE: MFGP), and Innophos Holdings (NASDAQ: IPHS) were among the worst performers. Here's why they did so poorly.
Shares of Infosys dropped 12% after the Indian IT services specialist announced allegations from whistle-blowing employees of unethical practices within the company's executive leadership. Reports suggested that the complaints included assertions that executives weren't going through the required review and approval process for major new customer agreements. In general, high demand for technology consulting services from a wide range of enterprise customers has lifted shares of tech services companies like Infosys over the past several years. But a loss of confidence in leadership could reverse that trend and leave Infosys falling behind its competitors.
Image source: Infosys.