Why Teva Pharmaceutical Industries, Snap, and NetEase Slumped Today

Monday was a quiet but positive day for the stock market, as many investors traditionally lie low for the week of Thanksgiving. The Dow finished higher by 72 points, but most major benchmarks were up less sharply on a percentage basis. Generally favorable economic conditions persist, and investors seem to be optimistic about the prospects for the holiday shopping season for ailing retail stocks. Yet shares of some companies weren't able to participate in today's upward moves for the key indexes, and Teva Pharmaceutical Industries (NYSE: TEVA), Snap (NYSE: SNAP), and NetEase (NASDAQ: NTES) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Shares of Teva Pharmaceutical Industries fell more than 5% following mixed comments from late last week from analysts at Mizuho Securities. Mizuho cut its price target on Teva by 20% to $12 per share, keeping a neutral rating on the stock but raising some concerns about the company's future. On one hand, Teva faces the threat of a bond-rating downgrade that could push it into high-yield junk bond territory, making it much more difficult to access credit markets affordably. Mizuho isn't convinced that a downgrade must happen, but Teva will have to move aggressively to cut costs and reduce cash outlays to prioritize debt maintenance. With the company facing tough industry conditions in both its generic and specialty drug segments, Teva can't afford to make any mistakes in the near future.

Image source: Teva Pharmaceutical Industries.

Source: Fool.com