Stock Story -
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."
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy 1-800-FLOWERS? Find out by reading the original article on StockStory, it's free.
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.
![Why 1-800-FLOWERS (FLWS) Stock Is Nosediving](https://d68-invdn-com.investing.com/content/pic2ad36db083ffe5fb38733233eae974ea.jpeg)