Shares of Netshoes Ltd. plummeted 28% toward a record low in afternoon trade Wednesday, enough to pace the Nasdaq exchange’s decliners, after J.P. Morgan swung to bearish from bullish on the Latin America-based online shoe and clothing retailer, following yet another quarter of weak results. The stock’s selloff comes after it plunged 44% on Tuesday, after the company reported a wider-than-expected loss for a third-straight quarter and missed on revenue for a fourth-straight quarter. Analyst Andre Baggio cut his rating two notches to underweight, after being at overweight since he started covering the company in May 2017. “Since its IPO, [Netshoes] has disappointed on multiple fronts, leading to declining top line growth and risks a path to profitability,” Baggio wrote in a note to clients. “That is leading to a continuous cash burn, which should further stretch its balance sheet. The company went public on April 12, 2017 at an initial public offering price of $18 a share. Over the past 12 months, the stock has tumbled 89.5%, while the Renaissance IPO ETF has gained 15.1% and the S&P 500 has tacked on 13.5%.
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