Why Advance Auto Parts Stock Lost Over Half of Its Value in the First Half of 2023
Shares of automotive parts retail chain Advance Auto Parts (NYSE: AAP) dropped 52.2% in the first half of 2023, according to data provided by S&P Global Market Intelligence. The drop was particularly painful for shareholders considering the S&P 500 rose 15.9% during this time -- a sensational first-half performance.
Advance Auto Parts started off 2023 respectably; it was roughly keeping pace with the S&P 500 after it reported financial results for 2022 in February. But in March, Wall Street started turning more tepid toward the company's prospects. At that point, the stock started slipping.
However, Advance Auto Parts stock experienced a massive drop after reporting financial results for its fiscal first quarter of 2023. The company's revenue came up short of expectations, profitability plunged, and management lowered its guidance as well as substantially reduced its dividend. And all of this caused investors to completely abandon Advance Auto Parts stock in the first half of 2023.
Source Fool.com
