Sotheby’s Stock Falls 6% on Analyst’s DowngradeCowen’s Oliver Chen released a note earlier today linking Sotheby’s to lower expectations of global growth for 2019. The note provoked a 6% slide in Sotheby’s stock which had been on a month-long rally from its low of $36 on Christmas Eve.
- "We believe supply gathering is key to Sotheby's success and a combination of lower consumer confidence at the high-end, S&P 500 market volatility, and tough comparisons given prior years of solid momentum are all negatives for 2019," Chen said.
- "As financial volatility looms, we believe consumers will be more conscious of their spending, which can be a factor contributing to weaker auction sales," Chen said in a note Thursday. "As consumers become less optimistic about valuation, they will likely hold back on putting their pieces up for auctions, leading to contracted supply gathering for Sotheby's."
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