When you see a popular brand's stock down 50%, you may feel a deep-seated urge to buy the dip. Ubiquitous companies don’t just fade away; a rebound is on the horizon, and the stock is probably cheap, right? Well, you might want to check with Nike Inc. (NYSE: NKE) investors before assuming that what goes down must also go back up. The wheels of capitalism never stop churning, and newer, leaner competitors often send formerly successful businesses to the trash bin. And yes, sometimes even your favorite brands are affected.
Not long ago, lululemon athletica (NASDAQ: LULU) was a premium athleisure brand, The Trade Desk Inc. (NASDAQ: TTD) was a leading ad-buying platform, and Charter Communications Inc. (NASDAQ: CHTR) was one of the largest broadband operators in the U.S. But now their stocks have all fallen at least 50%, and it's not because of a bad quarter or a macro scare. Each company faces a structural decline, and the evidence keeps piling up quarter after quarter. Here’s why they’re losing market share, and what might have to happen for the stocks to bottom.
