The stock market suffered losses on Monday, as investors became nervous once again about various aspects of the U.S. trade policy toward China and other key international partners. Even though the U.S. economy continued to show signs of strength, weakness elsewhere across the globe highlighted the interconnectedness of the world economic system. Some company-specific factors sent some stocks more sharply lower than the roughly 1% loss that the broader market suffered. GameStop (NYSE: GME), Qualcomm (NASDAQ: QCOM), and Zoom Video Communications (NASDAQ: ZM) were among the worst performers. Here's why they did so poorly.
GameStop loses a life
Shares of GameStop fell more than 6% after the video game retailer received unfavorable comments from stock analysts. Credit Suisse reduced its stock price target on GameStop by 30% to just $7 per share, with a substantial cut to earnings expectations as well. The company has worked hard to try to shore up its business against the threat of competition, especially given the efforts that game manufacturers have made to offer their products directly to consumers through digital distribution methods. With little hope for a future recovery, shareholders appear to be losing faith in GameStop's ability to survive in its current form.
Qualcomm deals with Huawei fallout
Qualcomm saw its stock drop 6% following news that the chipmaker had taken steps to comply with a federal government order late last week restricting its ability to do business with Chinese tech giant Huawei. The White House issued an executive order that prevented U.S. companies from engaging in commerce with foreign companies seen as security risks, with most analysts believing the move was directly intended to target Huawei. Qualcomm does a significant amount of business with the Chinese company, and so investors fear that the order could do damage to Qualcomm's financial results if disputes between the U.S. and China don't get resolved quickly.
Zoom moves lower despite getting some analyst love
Finally, shares of Zoom Video Communications lost 6%. The move came despite the video conferencing specialist having gotten favorable comments from investment advisors at William Blair, who began their coverage of Zoom with a rating of outperform. The institution pointed to the sizable customer growth that the company's seen in recent years and praised a strategy that not only targets bringing new customers on board but also works to expand its relationship with those existing clients as they become more familiar with the service. After a huge run-up following Zoom's IPO last month, the fact that the share price fell doesn't take anything away from how good the news has been for the company.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zoom Video Communications. The Motley Fool owns shares of GameStop and Qualcomm. The Motley Fool has a disclosure policy.