The stock market didn't see much in the way of sustained movement Wednesday, with the major market indexes finished mixed, but close to where they began the day. Various cross-currents pushed shares higher and lower throughout the day, including the potential for a breakthrough on the trade front, and nervousness about the directions of interest rates and monetary policy both in the U.S. and internationally. Weighing on sentiment was bad news from some key individual companies that sent their respective stocks lower. Snap (NYSE: SNAP), Fitbit (NYSE: FIT), and ASML Holding (NASDAQ: ASML) were among the worst performers on the day. Below, we'll look more closely at these companies to tell you why their shares fared so poorly.
Snap falls to new depths
Shares of Snap dropped 7%, reaching levels that had never been seen previously in its short publicly traded history. The social media company behind Snapchat has had to deal with several issues that have weighed on its performance, and today, a number of analyst companies reduced their price targets for the stock. Analysts at BTIG were the most skeptical, cutting their rating from neutral to sell and predicting the stock could drop to as little as $5 per share. With its poorly received redesign last year contributing to slowing growth, Snap hasn't proven that it can pull out of its tailspin, and the departure of yet another key executive this week showed a lack of commitment within the company's leadership ranks.
Fitbit deals with competition
Fitbit declined 6% after competing wearable-device maker Apple (NASDAQ: AAPL) released details about the next version of its popular wearable device. The new Apple Watch 4 will be the first device to come with clearance from the U.S. Food and Drug Administration to operate as an over-the-counter heart monitor with its electrocardiogram feature. Apple is pushing hard to emphasize the health benefits of its wearable device, and those following Fitbit fear that consumers will be less likely to buy that company's offerings during the holiday season given that they lack similar FDA credentials. With Fitbit already having lost a lot of ground to Apple even before this news, investors are more nervous than ever about the smaller company's future.
ASML gets a poor review
Finally, ASML Holding was down 5%. The maker of semiconductor manufacturing equipment had to deal with broadly negative comments from analysts at Goldman Sachs, who said that they no longer see the industry as particularly attractive. Goldman's comments were largely directed at ASML competitor Lam Research, but the analysts also pointed to excess capacity throughout the memory manufacturing space as being a bearish sign for the companies that provide the equipment semiconductor manufacturers utilize in the production of memory chips. Until this cycle for memory chips runs its course, ASML and its peers could all face difficulties replicating their recent periods of success.
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Dan Caplinger owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Fitbit. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.