Zymergen ($ZY) – You probably don't know Zymergen, and after today's 76.3% free-fall, it might not matter. Synthetic biology is often hailed as a generational wealth building opportunity, leading companies like Zymergen to ride that hype into an IPO, as they did this past April. Unfortunately, with great expectations comes basic expectations like making money, which Zymergen has decided to pass on at this time. The company announced that it expects 2022 revenue to be "immaterial", aka nonexistent, which is not something investors generally like.
General Motors ($GM) – It's a tale as old as time. You beat on earnings, but your forward guidance comes up short of expectations so you end up losing almost 1/10th of your company's value. GM is the latest victim of this vicious cycle, falling 8.9% yesterday. With EPS of $1.97 on $34.2bn in revenue compared to expectations of $1.82 & $29.9bn, the firm managed to deliver an upbeat quarter, despite some product recall events. However, full year earnings guidance came up short of analysts' hopes, leading to yesterday's rout.
CVS Health ($CVS) – Not a great call by CVS to follow GM's beat-and-fall strategy, but hey, sh*t happens. The pharmacy / convenience store / health hub knocked earnings out of the park, but their planned investment strategy was not to analyst's liking. For one, the firm is raising its minimum wage to $15/hr, and who would want a company they own to pay workers a living wage? Alongside that disappointment was an increase in forward guidance by only about 2%. shares fell 2.9% in response.