Why High-Growth Consumer-Facing Stocks Were Diving Today

Shares of high-priced consumer-facing stocks like Wayfair (NYSE: W), Planet Fitness (NYSE: PLNT), and Freshpet (NASDAQ: FRPT) were all tanking today as the broad market plunged over fears around the expanding coronavirus outbreak.

An Oval Office address from President Trump last night did little to stabilize markets, and he also announced a 30-day suspension of most travel from Europe, which sent markets plunging across the pond this morning. At the same time, the NBA suspended its season after a player tested positive. A number of colleges sent students home, mandating classes be online, while businesses across the country instituted similar work-from-home policies. A brief recovery in the afternoon after the Federal Reserve said it would inject $500 billion into banks quickly faded.

Investors continued to flee consumer-facing stocks like the trio above. As of 2:32 p.m. EDT on Thursday, Wayfair stock was down 20%, while Planet Fitness had lost 12.6%, and Freshpet had fallen 15%. The S&P 500 was down 8% at that time.

Source Fool.com