Flat Week for the Markets Ends with Big Friday Losses
PUBLISHED ON: Apr 17, 2015
In overseas trading, the dominant trends were a stagnant Europe and growing Asia.
Netflix Clearly Wins The Week Thanks To Great Fundamentals. Arguably this week's biggest success story was Netflix (NFLX), which posted higher than expected Q1 gains to both revenues and subscribers. Its surge came on Thursday and held firm even during Friday's downturn, posting 25% gains over 5 days. Netflix's latest big gains moved share prices up from below $480 to $571.55 per share.
Forcefield Energy's Dishonest Practices Make It The Week's Big Loser. It looks like the SEC's lasers are set to penetrate Forcefield Energy (FNRG) in one of the nerdiest metaphors I have ever seen published. The company is accused of a list of things, including not disclosing its advertisers, deceptive business practices, and even outright fraud.
While the lawyers on both sides are just getting started with this investigation, the news has already had a huge impact on share prices. Forcefield Energy's (FNRG) stock fell 50% this week, as its investors abandoned ship in droves. Forcefield opened the week above $7.20 per share and ended the day Friday at $3.97.
Etsy's IPO Goes Live. Online marketplace Etsy (ETSY) could not have picked worse market conditions to debut on the NASDAQ, going live on Thursday right before Friday's downturn. Still, the stock managed to hold its ground, and even make gains over and above the initial offering price of $16 per share. By the end of the day on Thursday, Etsy stock was up to $30 per share, before premarket trading and a tough Friday lead the stock to close the week at $27.58.
Etsy (ETSY) has used $300,000 of the money that the IPO has raised in order to establish a non-profit, in the hopes of maintaining its status as a B-corp company. Under B-corp certification rules, the company has to concern itself with social, environmental, and other public benefits. Since Etsy has never made a profit, being able to hold onto its B-corp status -- and the tax breaks that come with it -- is crucial to Etsy's share price in the mid-term.
Chinese Online Marketplace 58.com Up 30% On The Week. China's answer to eBay, 58.com (WUBA), saw share prices surge this week as the Asian recovery continued full-throttle. The company, with its $6 billion market capitalization and large base of users, is poised to become one of the places that investors look to judge the strength of the Chinese consumer economy -- which has historically been a very tricky thing for analysts to do.
58.com (WUBA) grew by over 30% this week, opening at $55 on Monday and growing an additional 4.34% on Friday to close the week at $70.50 per share. 58.com share prices shot up after it acquired a significant stake in a holding company for Ganji.com, a Chinese local services marketplace similar to Craigslist.