Biggest Losers of 2019

In the midst of the great gains and incredible feats that the stock market reached in 2019, there were stocks that made losses. Of all the stocks that performed poorly in 2019, there are a few that caught our eyes and we want to look at them.

Here are 3 losers that are worth taking note of:

Jumia Technologies (NYSE: JMIA)
78.5% decline; Current Price: $5.9

Jumia had a very bad year. The company was supposed to be a forerunner, the first African company to be publicly traded on the U.S. stock exchange. It was a huge deal and it started out so well. In April Jumia listed on the US Stock Market at $14.5 per share. By the fourth day of trading, stocks rose as high as $49.77. Then investors found out that Jumia’s operating loss had widened year on year by $51 million, meaning that Jumia had accumulated $1 billion in losses since inception. After that everything went really bad, really fast.

Jumia shares are currently trading at $5.5, my opinion is that this is a fair price for the stock as the entire IPO cloud has come down and the Pre-IPO investors who were itching to make gains have successfully exited.

However, what the future holds may be positive depending on the path the management decides to take. Should they drive towards profitability and are able to post strong reports, the rest of the path may be full of optimism.

Abiomed Inc (NASDAQ: ABMD)
46.9% decline; Current Price: $183.6

Abiomed is a health sector company. Typically its shares sell at about $330 per share but right now it is currently trading at $183.6. Their shares declined by about 47% by the end of 2019.

What went wrong? They tested a new heart pump product called Impella. The tests had a negative result and as a result, the people who opted in died.

Abiomed started 2019 trading at $360, and is typically a resilient company, with strong financial fundamentals, they should be able to weather this storm and come back stronger in 2020.

Canopy Growth (TSE: WEED)
25.7% decline; Current Price: $20.8

Canopy Growth is a cannabis company. In 2019, shares fell as a result of poor earnings posted in Q2 of 2019 where their net revenue declined by 15%. Unfortunately, this decline in earnings is the opposite of what growth investors seek (and the majority of Canopy investors are growth investors).

2020 is predicted to be a good year for the Cannabis industry, so we would not write off Canopy growth having a high 2020.

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