Economy

Netflix and Tesla Lead High P/E Stocks Down

Stock Quotes
Source: Thinkstock
Among the stocks taking the biggest nose dive in Monday morning’s equity market plunge were some recent high flyers, some of which have been showing signs of correction in recent days. The Dow Jones Industrial Average (DJIA) opened down more than 900 points, about 5.6%, while the S&P 500 opened down about 3.4% and the Nasdaq Composite opened down nearly 9%. If the S&P 500 falls 7%, the NYSE will halt trading for 15 minutes.

Apple Inc. (NASDAQ: AAPL) opened down about 10% Monday morning at $95.12. The last time the stock closed below $100 a share was in early October of last year. The impact of Apple’s share-price drop on the Nasdaq Composite and the DJIA will be significant.

Netflix Inc. (NASDAQ: NFLX) opened down about 14.5% Monday morning at $88.75. Shares were trading around that point in late May and early June of this year but closed at a high of $126.45 earlier this month.

Tesla Motors Inc. (NASDAQ: TSLA) opened down about 12.4% at $202.79 a share Monday morning.

Facebook Inc. (NASDAQ: FB) opened down more than 12% at $77.03.

Twitter Inc. (NYSE: TWTR) opened down about 9% and fell to a new 52-week low of $21.01 (down 15%) shortly after the opening bell. That seemed to trigger some buying, as the stock shot back to more than $26 a share before giving back a couple of dollars.

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GoPro Inc. (NASDAQ: GPRO) dropped to $43.30 at the opening bell, down nearly 11%.

Amazon.com Inc. (NASDAQ: AMZN) dropped about 6% at the bell, to open at around $463.58. Investors appear to be more sanguine about the online retailer’s prospects, moving the shares up about $8 in the early going.

Whether or not there were programmed buys set to trigger, these high price-to-earnings ratio stocks made a quick comeback from the opening lows. And only one, Twitter, posted a new low.

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