15 May

Why Symantec Stock Bounced Back on Monday

WRITTEN BY Sneha Nahata

Symantec gains 9.6% on Monday

Symantec (SYMC) stock bounced back on Monday, rising ~9.6% to $21.40 after falling more than 30% on Friday on news of an internal audit. According to CNBC, Symantec, the world’s biggest maker of cybersecurity software, witnessed its best day in six years on Monday. However, Symantec stock has fallen ~23% year-to-date, while the S&P 500 (SPY) and PowerShares QQQ ETF (QQQ) have gained 2.1% and 9.2%, respectively.

Why Symantec Stock Bounced Back on Monday

Accusations by former Symantec employee

Symantec, the maker of Norton antivirus software, launched an internal investigation last week after a former employee raised issues related to the company’s disclosure of historical results, executive compensation, and stock plans. The audit announcement sent its stock down 33% on May 11, reducing its shareholder value by $6 billion.

Though the investigation is currently at a nascent stage, the company does not expect to make significant negative changes to its historical financial disclosures. However, when Symantec announced its fiscal fourth-quarter 2018 results last week, the company announced that the internal audit might delay its annual report and dent financials in future quarters.

Why Symantec Stock Bounced Back on Monday

According to CNN, Symantec vice president of investor relations Cynthia Hiponia stated that the investigation “does not relate to any security concern or breach concerning our products or systems.”

To address investors’ concerns, Symantec announced it would hold a call with investors on May 14 to discuss the internal investigation and the company’s outlook. Its stock recovered on Monday. Whereas Symantec’s market cap on May 14 was $13.3 billion, software peers IBM (IBM), Oracle (ORCL), and Microsoft (MSFT) had market caps of $132.5 billion, $191.1 billion, and $753.2 billion, respectively.

Latest articles

16 Jul

Q2 Earnings Were a Mixed Bag for J.B. Hunt

WRITTEN BY Anirudha Bhagat

J.B. Hunt reported mixed Q2 earnings, as its revenues grew YoY but earnings declined.

16 Jul

What to Expect From Nucor’s Q2 Earnings This Week

WRITTEN BY Mohit Oberoi, CFA

Nucor is scheduled to release its second-quarter earnings on Thursday. The company has seen an upwards price action of 7.4% year-to-date.

16 Jul

Will HollyFrontier's Q2 Results Improve?

WRITTEN BY Maitali Ramkumar

HollyFrontier (HFC) is expected to release its second-quarter results on August 1.

On Monday, Citigroup downgraded Tiffany (TIF) stock to “neutral” from “buy” and reduced its target price to $100 from $115 per share.

16 Jul

AT&T’s WarnerMedia Segment to Cut Jobs

WRITTEN BY Ambrish Shah

AT&T’s WarnerMedia segment is planning job cuts from its ad sales unit as the company continues to reorganize the businesses it acquired.