Yahoo Finance Why 1-800-FLOWERS (FLWS) Stock Is Nosediving
What Happened:
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) fell 9.7% in the morning session after DA Davidson downgraded the stock's rating from Neutral to Underperform (Sell). The rationale behind the downgrade includes the analysts' conviction that "1-800-Flowers.com (FLWS) will issue soft FY25 guidance in light of recession-level consumer sentiment and anemic everyday gift giving, with rising cost inflation further driving down profitability."
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What is the market telling us:
1-800-FLOWERS's shares are somewhat volatile and over the last year have had 13 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
1-800-FLOWERS is down 2.8% since the beginning of the year, and at $10.22 per share it is trading 9.5% below its 52-week high of $11.29 from December 2023. Investors who bought $1,000 worth of 1-800-FLOWERS's shares 5 years ago would now be looking at an investment worth $522.41.
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