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Latest Reports on Trending Tickers Fitbit and Rite Aid

January 31st, 2017 – U.S. markets tumbled Monday as the recent travel bans approved by President Trump has created some uncertainty amongst investors. The Dow Jones Industrial Average fell nearly 220 points before settling to close at 19,971.13, down 0.61 percent, while all 11 major sectors in S&P 500 Index fell Monday pressuring the index lower to close at 2,280.90, down 0.60 percent. The CBOE Volatility index, a key measure of volatility conveyed by S&P 500, spiked 12.29 percent to close at 11.88.

“While we continue to think a Trump victory likely means higher U.S. growth in 2017 than we would have expected three or six months ago, we still think volatility will be a feature of the year,” Jim Reid and Craig Nichol, analysts at Deutsche Bank, wrote in a note to clients on Monday. “It just seems that there are too many uncertainties, unknowns and major policy changes attached to a Trump presidency for it to be a smooth year.”

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On Friday, data release by the Commerce Department showed gross domestic product (GDP) grew at a 1.9 percent annual rate in the fourth quarter, a sharp decline when compared to a growth of 3.5 percent in the third quarter. Economists had forecasted a growth of 2.2 percent, according to a poll conducted by Reuters. The U.S economy grew 1.6 percent in 2016, which was the lowest growth see since 2011.

Fitbit Inc. (NYSE:FIT)

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Fitbit’s shares fell 15.95 percent to close at $6.06 a share Monday. The stock traded between $5.90 and $6.66 on volume of 48.17 million shares traded. The company expects to report sales of 6.5 million devices and revenues in the range of $572 million to $580 million for the fourth quarter of 2016, well short of its previous guidance of revenues of $725 million to $750 million. The company expects Non-GAAP diluted net loss for the fourth quarter to be in the range of $0.51 a share to $0.56 a share, compared to the previously announced Non-GAAP net income guidance range of $0.14 a share to $0.18 a share. Fitbit also announced a reorganization of its business that includes a reduction of approximately 110 employees, roughly 6 percent of its global workforce.

"We believe the evolving wearables market continues to present growth opportunities for us that we will capitalize on by investing in our core product offerings, while expanding into the smartwatch category to diversify revenue and capture share of the over $10 billion global smartwatch market," said James Park, Fitbit co-founder and CEO, in the company’s news release.

Rite Aid Corporation (NYSE:RAD)

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Rite Aid’s shares dropped 17.46 percent to close at $5.72 a share Monday. The stock traded between $5.70 and $5.93 on volume of 112.71 million shares traded.  On Monday, the company and Walgreens Boots Alliance, Inc. announced an amendment to its previously announced definitive merger agreement. Walgreens Boots Alliance has reduced its offer price to $6.50 to $7.00 per share, down from its previous offer of $9.00 per share and the deal will allow Walgreens Boots to divest up to 1,200 rite aid stores, an increase of up to 200 stores that was agreed under original agreement. The new offer price would value Rite Aid between $6.84 billion to $7.37 billion. The expected closing date has also been extended to July 31st, from its previous target of January 27th.

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