Why Frontier Communications, Qudian, and RYB Education Slumped Today
The day after Thanksgiving is traditionally a quiet one for the market, and today was no exception, as major benchmarks generally stayed relatively close to where they began the day. The beginning of the busiest part of the holiday shopping season seemed to indicate solid demand from U.S. consumers, pointing to good economic prospects and leading many investors to conclude that the bull market in stocks is likely to stay in place going into 2018. Yet a few individual stocks didn't reflect the sunny sentiment on Wall Street. Frontier Communications (NASDAQ: FTR), Qudian (NYSE: QD), and RYB Education (NYSE: RYB) were among the worst performers on the day. Below, we'll take a closer look to see what made these stocks do so poorly.
Shares Frontier Communications fell another 6% today. The telecom company had high aspirations with its acquisition strategy, most recently spending more than $10 billion to purchase key assets from Verizon in the California, Florida, and Texas markets. Yet despite the expansion potential that the acquisition gave Frontier, operational challenges have proven too great for Frontier to overcome, and the result has been far less benefit from the purchase than Frontier shareholders had expected. With huge amounts of debt and ongoing business difficulties, many Frontier investors are losing hope in the telecom company's prospects.
Image source: Frontier Communications.
Source: Fool.com
