• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

To Guide or Not to Guide?

Twitter, Yelp and LinkedIn all tanked after lowering guidance.
By ADAM SARHAN May 07, 2015 | 05:00 PM EDT
Stocks quotes in this article: TWTR, YELP, LNKD, GMCR, HUBS, BABA, NCLH, WFM, KATE

We have made our way through the bulk of earnings season and our two biggest takeaways so far are:

1. Investors don't "like" social media stocks

2.  All eyes are on guidance

To address the first point, social media stocks have been annihilated this season after Twitter (TWTR), Yelp (YELP) and LinkedIn (LNKD) all lost more than a quarter of their value after reporting their first quarter results. These stocks were hit hard after all three companies, in this once hot space, reported lackluster numbers and lowered guidance for the second quarter and the rest of 2015. That raises the question: If these companies aren't bullish about their future -- why should investors be?

Which brings us to our second point -- all eyes are on guidance. As more and more companies released their numbers, it became clear to us that, this season, the biggest casualties came from companies who lowered their guidance. Keurig Green Mountain (GMCR) was just the latest shoe to drop after the company lowered guidance.

History shows us that some of the market's biggest winners can be found from stocks that gap up after reporting earnings. Conversely, some of the biggest losers occur from stocks that gap down after reporting numbers. That's why we spend a lot of time analyzing what happens during earnings season for our advisory and research clients. In addition to doing our homework (to borrow a term from Jim Cramer) and analyzing the actual numbers, we also look at how stocks react to the numbers. Here is a quick glimpse at some of today's winners and losers as we make our way through earnings season.

Today's Winners: HubSpot (HUBS), Alibaba Group (BABA), Norwegian Cruise Line Holdings (NCLH). 

Today's Losers: Whole Foods Market (WFM), Keurig Green Mountain (GMCR), Kate Spade (KATE).

If history is any guide, we should expect winners to rally from here and the losers to continue to fall (barring some unforeseen event in either direction).

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Sarhan had no positions in the stocks mentioned

TAGS: Investing | U.S. Equity | Technology | Stocks

More from Technology

China's Rubber-Stamp Congress Set to Kick Off

Alex Frew McMillan
Mar 3, 2021 7:45 AM EST

Cracking down on Hong Kong and outlining plans for future growth are two key items on the agenda in Beijing.

Biden Bits, Vaccine Vanguard, Unmasking Folly, Minerd Musings, Ives Inklings

Stephen Guilfoyle
Mar 3, 2021 7:36 AM EST

Among other things, the president works to align Democratic senators to support his massive Covid relief bill.

Dreary Market Action Disappoints

James "Rev Shark" DePorre
Mar 2, 2021 4:40 PM EST

Big-cap tech names slip into the red and pockets of momentum become harder to find.

All Bets Are Off With Inseego as it Gaps Lower and Slides Further

Bruce Kamich
Mar 2, 2021 2:05 PM EST

This looks like a 'hot knife'.

I'm Betting Draganfly Will Fly Past Those Other Drone Cos.

Timothy Collins
Mar 2, 2021 12:05 PM EST

Buzz around deal with Apple co-founder should take Draganfly higher, and if you disagree, I have a question for you.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:50 AM EST PAUL PRICE

    Michaels: Close to a Deal?

    It appears that a deal could be announced soon. ...
  • 08:34 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 3/3/2021

    SPX (Long-Term View) The 20 DMA @ 3889 with the ...
  • 06:05 PM EST PAUL PRICE

    Michael's (MIK) Up on Takeover Rumors

    The NYT says talks are underway regarding a buyout...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login