BODY - Why The Beachbody Company Stock Dropped as Much as 16.5% in Early Trading Today
Shares of The Beachbody Company (NYSE: BODY) , which provides fitness subscription services and sells fitness equipment and wellness products, were lower by as much as 16.5% in morning trading on Nov. 17. However, today's drop needs to be put into a larger context, given that the stock has now lost about a third of its value in just the last two days. This all relates to its after-the-close earnings release on Nov. 15.
The big share price dive on Nov. 16 was really all about Wall Street's reaction to The Beachbody Company's weak quarterly results. Sales were down across its main businesses. Earnings fell notably year over year, dipping into the red. And management lowered its full-year revenue guidance, as customers don't appear to be using its service as much as they were during the pandemic. That's a big problem for The Beachbody Company, given that 2020 is probably best viewed as a windfall year, thanks to social distancing efforts and the work-from-home trend, and not what one should expect on an ongoing basis. So the million-dollar question is: What is normal and when will the company's results reflect it?
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Why The Beachbody Company Stock Dropped as Much as 16.5% in Early Trading Today