I recently wrote about some surprising stocks that have more than doubled so far this year, but now it’s time to check out some of the more unfortunate investments. Let’s go over some of the stocks that have lost at least half of their value in 2015 as of the Oct. 25 market close.
Lumber Liquidators (LL) — Down 78 percent
Things seemed to be humming along for the country’s largest stand-alone hardwood flooring retailer until a “60 Minutes” report called out the potentially hazardous nature of some of its laminate flooring. The scathing segment tested Lumber Liquidators’ China-sourced laminates, finding many of them to contain dangerous levels of formaldehyde.
Lumber Liquidators initially denied the claims, but ultimately decided to stop selling the flooring altogether. By then the damage was done. Sales took a dive, and they have yet to recover. This isn’t the first time that Lumber Liquidators has courted controversy, but it’s the first time that the implications have had health concerns. That’s hard to bounce back from in the near term.
Keurig Green Mountain (GMCR) — Down 60 percent
The company that revolutionized the way that we consume premium coffee at home with the original Keurig single-cup brewer has been quite decaffeinated in 2015. The downfall may have started in 2012 when the patents for its K-Cup portion packs expired, but things got really bad last year when it rolled out Keurig 2.0.
Armed with a label scanner, the new brewers only work with new K-Cups. Sure, clever java junkies have circumvented the process by slapping a new label on old, reusable or third-party portion packs, but the brand has taken a hit all the same. Year-over-year sales fell for the first time in its latest quarter, and the new Keurig Kold machine that makes chilled carbonated beverages isn’t garnering rave reviews since last month’s launch.
Yelp (YELP) — Down 55 percent
The site that many foodies turn to for crowdsourced reviews has been giving investors indigestion this year. Yelp has been dogging allegations from disgruntled merchants for years that the site buries negative reviews for local businesses that pay to advertise on Yelp. It’s been a different story on the consumer end, with folks relying on the site for peer reviews of restaurants, shops, spas, and other businesses.
The rub here is that mobile growth is slowing, and desktop usage is actually declining. There are also fears that Yelp relies too heavily on Google (GOOG,GOOGL) searches for traffic, something that could prove to be a sticking point if the leading search engine decides to promote its own ratings platform.
GoPro (GPRO) — Down 54 percent
One of last year’s hottest IPOs has wiped out this year. GoPro made wearable cameras cool, but decelerating growth can’t seem to justify the lofty valuation the company had after last year’s frenzied surge. GoPro’s HERO cameras continue to sell well, but analysts see sales slowing considerably this holiday season.
Fossil (FOSL) — Down 53 percent
Folks have been predicting the death of the designer watch for years. Who needs a wrist-hugging timepiece when there’s a smartphone in the pocket? Now the death knell is all about smartwatches.
Fossil was able to defy gravity in recent years, but that hasn’t been the case in 2015. Sales have started to decline, and profitability is taking an even bigger hit. Fossil is finally starting to live up to its name.