Why has the stock been in the shitter?

The decline in Waste Management's stock price can be attributed to several factors: 1. **Short-Term Performance**: The stock's immediate downturn is likely due to the company reporting second-quarter results that fell short of Wall Street expectations. Waste Management earned $1.69 per share on sales of $5.4 billion, compared to the estimated $1.83 per share on sales of $5.43 billion. This discrepancy led to investor disappointment. 2. **Cyclical Nature of Waste Volumes**: Waste volumes tend to move with economic activity, and the current downtick in collection and disposal volumes could be indicative of a slowdown in economic activity. This is a worrisome sign for the company's future revenue growth, especially if the trend continues. 3. **Market Sentiment**: The market's reaction to the earnings report was negative, with the stock price dropping 6% as of 10:45 a.m. ET. This reflects investor pessimism about the company's short-term prospects. 4. **Long-Term Prospects**: Despite the short-term challenges, Waste Management's strategic acquisitions and investments in renewable energy and recycling could position the company well for long-term growth. However, these long-term benefits may not be immediately apparent to the market. 5. **Industry Challenges**: The waste management industry faces significant challenges, including the need for reliable waste collection services, limited source separation of waste, and the reliance on unmanaged landfills and open dumps. Overcoming these challenges will be crucial for the industry's—and Waste Management's—future growth. In conclusion, the decline in Waste Management's stock price can be attributed to a combination of short-term performance, market sentiment, and industry challenges. While the company continues to make strategic moves, the immediate focus is likely on addressing the short-term issues that have led to the stock's decline.