Large-Cap Stocks Underperform: Synopsys, Chewy, Trade Desk Among Top 10 Losers

Large-cap stocks Synopsys, Chewy, and The Trade Desk lost 29.20%, 18.05%, and 13.75% respectively last week. The losses were attributed to worse-than-expected financial results, lower price forecasts, and a downgrade from Morgan Stanley. Other large-cap stocks that lost value include Summit Therapeutics, Rubrik, BioNTech, Ferguson Enterprises, Humana, Samsara, and Burlington Stores.

Large-cap stocks Synopsys (SNPS), Chewy (CHWY), and The Trade Desk (TTD) experienced significant losses last week, with declines of 29.20%, 18.05%, and 13.75% respectively. The sell-off was driven by a combination of worse-than-expected financial results, lower price forecasts, and downgrades from investment firms.

Synopsys, a leading provider of chip design software, saw its stock plunge 29.20% following the release of its third-quarter results. The company reported revenue of $1.74 billion, falling short of analyst estimates of $1.77 billion. Adjusted earnings per share (EPS) also missed expectations, coming in at $3.39 compared to the anticipated $3.74. The underperformance was primarily attributed to weaknesses in the Design IP business, including disrupted design starts in China, challenges at a major foundry customer, and internal roadmap issues Synopsys Stock Sinks 22% As Revenue and Earnings Miss Estimates in Q3^[1].

Chewy, a popular online pet supply retailer, saw its stock drop 18.05% after reporting second-quarter results. Despite revenue and EPS meeting expectations, the company's 79% fall in net profit and less-than-expected investment into the business raised concerns. JP Morgan maintained its 'Overweight' rating on Chewy stock but noted that the over 16% drop was an overreaction to the company's financials. The company's full-year sales forecast was also boosted, but the stock's decline was attributed to margin compression worries Chewy Retail Watchers Sniff Buying Opportunity After 16% Plunge Post Earnings — Analyst Calls Selloff Overblown^[2].

The Trade Desk, a digital ad tech company, faced a 13.75% decline after Morgan Stanley downgraded its stock to "equal weight" from "overweight." The downgrade was driven by mounting concerns about the company's connected TV business, which has been facing headwinds. Morgan Stanley cited their past mistakes in predicting the company's growth Morgan Stanley moves to the sidelines on Trade Desk on 'mounting concerns' over growth^[3].

Other large-cap stocks that lost value include Summit Therapeutics, Rubrik, BioNTech, Ferguson Enterprises, Humana, Samsara, and Burlington Stores. These companies also reported financial results that fell short of expectations or faced negative analyst commentary.

Investors should closely monitor these large-cap stocks for any signs of recovery or further declines. The recent sell-off highlights the importance of staying informed about company-specific events and market trends.