ZGNX - Why Overstock.com Zogenix and Mogu Slumped Today
Monday was a good day on Wall Street, as investors were pleased to see the U.S. take more conciliatory positions on trade issues with major foreign powers. Fears of a global recession are still present, but market participants acknowledge that if news out of Washington gets less confrontational, the odds of avoiding a slowdown should go up. However, some individual companies faced challenges that sent their share prices lower. Overstock.com (NASDAQ: OSTK), Zogenix (NASDAQ: ZGNX), and Mogu (NYSE: MOGU) were among the worst performers. Here's why they did so poorly.
Shares of Overstock.com continued their downward trend from last week, falling another 16%. Last week's move was prompted largely by the departure of founder and CEO Patrick Byrne, who left his leadership roles at the company after making controversial statements about his involvement in various political investigations. This morning, interim CEO Jonathan Johnson gave his view on the company's future, which still appears to be focused on making a transition toward cryptocurrency. Investors don't seem as comfortable about abandoning Overstock's original e-commerce business, and that appears to have fueled the stock's decline today.
Image source: Overstock.com.