Shares in the region slide amid market-wide decline
Wednesday, June 15, 2022
After years of charging, US stocks have entered hibernation, at least by the common definition of a bear market: a market-wide drop of 20% or more from a recent high.
Most major indexes are down by at least that much from their early-year highs, with the biggest losses coming on June 13. Companies based in the tri-county region were not spared, with some losing nearly 10% on the day.
Here’s how the six largest publicly traded companies in the region fared in the new bear market:
The region’s largest publicly traded company and one of the world’s largest biotech companies, Thousand Oaks-based Amgen, escaped the worst of the June 13 selloff. Its shares closed at $236.77 that day, down just 1.3% from the previous trading day. Amgen opened at $236.53 on June 15.
Angen has had good news in recent weeks about federal approvals for a new treatment using one of its biosimilar drugs and other positive results in ongoing drug trials, and its shares have actually been on the rise since the beginning of 2022, by 3.7%. The company is one of 30 members of the highly selective Dow Jones Industrial Average, and the Dow as a whole is down 16.4% year-to-date.
The second-largest company in the Tri-County area by market capitalization is The Trade Desk, a Ventura-based ad tech company. Like most internet-based businesses, The Trade Desk has been hit hard by the recent bearish market reversal.
Shares of The Trade Desk closed at $45.40 on June 14, down 50.5% year-to-date. His worst days were in early March and on June 13 he was down 7.5%.
Its performance in 2022 was even worse than the Nasdaq as a whole, where The Trade Desk trades. The Nasdaq is down 30% since the start of 2022.
The Trade Desk’s share price has now returned to roughly where it was in mid-2020, erasing two years of gains made during a strong bull market for tech stocks.
Trade Desk CEO Jeff Green is one of the richest people in the tri-county area, with his net worth estimated by Forbes at $3 billion, based on the company’s current stock price. society. That total has dropped by about $2 billion since the end of 2021.
Analysts believe The Trade Desk is now significantly underperforming its potential. The average price target of 18 analysts tracked by Yahoo Finance is $75.89, and most analysts rate the stock as a “buy” or a “strong buy.”
Teledyne, a Thousand Oaks-based defense and technology conglomerate, saw its shares soar in March and April as the war in Ukraine raised the likelihood of higher defense spending. But between April 20 and May 20, the stock lost 21% of its value.
Teledyne closed at $364.83 on June 14, down 22.7% year-to-date. The average price target of the seven analysts tracked by Yahoo Finance is $525.57, and most analysts have a “buy” rating on the stock.
Olaplex, a Montecito-based hair products company that went public last year, closed at $14.84 on June 14, about half its value at the start of 2022. Those losses came entirely in January and February, and the stock has remained fairly stable since then, although it fell 8% on June 13.
Analysts are bullish on Olaplex: the 12 analysts tracked by Yahoo Finance rate the stock as either a “buy” or a “strong buy,” with an average price target of $24.27.
Deckers Brands, based in Goleta, owns Ugg, Teva, Hoka One One and other shoe brands. Its stock lost 7.8% in a single day on June 13. It is down 31.4% for the year and closed June 14 at $251.74.
Despite these difficulties, the first half of 2022 brought plenty of good news for Deckers. The company set revenue records in 2021 and beat analysts’ earnings expectations, pushing its shares up 22% on May 20, the day after it released its fourth-quarter earnings report and 2020 earnings. full year. Sales of Ugg boots alone reached $1.9 billion in 2021, and Deckers as a whole recorded more than $3.1 billion in revenue.
Procore, a Carpinteria-based company that provides cloud software to the construction industry, closed at $43 on June 14, down 46.2% from the start of the year. Its decline on June 13 was around 5%.
Procore continues to post strong revenue growth, including a 33% increase from 2020 to 2021. But it has yet to turn a profit, and its net loss of $50 million in the fourth quarter of 2021 was 6 % greater than its quarterly loss a year earlier. .