If there was one word to describe the market in the last year, it would be “volatile.” In a time of trade wars, tariffs, the coronavirus’ impact on global trade, IPOs and so much more, only one thing is certain: we’re living through stock history in real time.
To help keep track of all the sea change on Wall Street, we’ve started a weekly roundup of what stocks are seeing the most growth, which are waning, and which are in deep trouble.
The Good:
Detroit Auto Manufacturers
Sometimes, it pays to be prepared. After learning their lesson from the last recession, the cabal of Detroit auto manufacturers aren’t looking for a bailout
quite yet this time around. Compared to the airline industry, which is plagued with calls for more cash and angst over bankruptcies, the automakers have gone through great lengths over the last decade to balance their sheets and have ways to sustain
during times of crisis. Though the coronavirus is hitting auto manufacturing even harder
than the recession of 2008 did, the manufacturers have hoarded cash and called on lines of credit to stay afloat. With the Michigan governor giving the go-ahead for auto plants to reopen soon, auto is in a better place
than many industries.
After sustaining a rise in sales, brand awareness and revenue, Under Armour hit a wall while rivals like Nike continued to climb. Because of this, Under Armour had planned a massive comeback in order to get back into the ring against other athletic and athleisure companies, including Lululemon, Adidas and Nike. Now, due to the coronavirus and the virus’ impact on wholesale retailers, Under Armour is hitting a wall. In the first quarter, of which only part was impacted by the virus, Under Armour saw sales sink 23%, leading to a slip of 5%
in stock value. Under Armour plans to cut $325 million
in operating costs to offset the impact of the virus. Under Armour shares are down almost 54% on the year.