Which of these stock market favorites are now on the “for sale” rack?
Hat tip to Jenny Trieu for the idea behind this Question of the Day and how it demonstrates the importance of diversifying your investments.
Answer: ALL
Ask:
What emotions do you think an investor who owns one or more of these stocks might be feeling right now? Do you think they would have kept or sold if the stock price plummeted? Do you think that owning a share in one company is more or less risky than owning a fund that invests in 500 companies? Which of the three companies mentioned do you think has the best future?
Here are the ready-made slides for this Question of the Day that you can use in your classroom.
Behind the Numbers (Robinhood, Gap, Netflix)
Robinhood: Robinhood shares rose to a record high of $85 a share shortly after listing in August 2021, but have since plunged 87% as the pandemic-driven frenzy of retail investors subsided. Now Goldman Sachs is telling investors to sell Robinhood stock. Gap: the shares of Gap Inc. fell more than 18% Friday after the company lowered its sales outlook for the first quarter of fiscal 2022, citing what it called “execution challenges” its Old Navy business, and that division’s CEO, Nancy Green, announced, will be leaving her post this week. Netflix: Shares of Netflix closed more than 35% on Wednesday after the streamer reported earnings Tuesday night that showed it was losing subscribers for the first time in more than 10 years.
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STAX is the #1 investment game to teach your students about the challenges of “beating the market” as they make 20 years of investment decisions in 20 minutes.
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This MOVE activity: Organize a Stock Index helps students understand what an index fund is.
About the author
Tim Ranzetta
Tim’s savings habits started at 7 a.m. when a neighbor with a broken hip gave him a dog walking job. Her recovery, which lasted nearly a year, led to Tim getting to know the bank clerks quite well (and building a savings account balance of over $300!). His recent entrepreneurial adventures include driving a chipper, analyzing compensation packages for Fortune 500 companies, and helping families make better college funding decisions. After volunteering in 2010 to establish a personal finance program and teach at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him. to start a new nonprofit, Next Gen Personal Finance. †
This post Question of the day: Which of these 3 companies has seen their stock prices drop more than 65% in the past year: Robinhood, Gap or Netflix?
was original published at “https://www.ngpf.org/blog/question-of-the-day/question-of-the-day-which-of-these-3-companies-have-seen-their-stock-prices-fall-by-more-than-65-over-the-past-year-robinhood-gap-or-netflix/”
