Shares of FXCM Inc. (FXCM) are crumbling in early trading Friday, down nearly 86% after the biggest retail foreign-exchange broker in Asia and the U.S. announced that its clients couldn’t pay back debts following the Swiss franc’s massive rally Thursday.
The broker, which has over 230,000 clients worldwide and handled $1.4 trillion in trades last quarter, announced that due to unprecedented volatility in EUR/CHF pair after the Swiss National Bank announced the end of its three-year currency cap of 1.20 vs. the euro, clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million.
“As a result of these debit balances, the company may be in breach of some regulatory capital requirements. We are actively discussing alternatives to return our capital to levels prior to today’s events and discussing the matter with our regulators,” FXCM said in a statement.
Following the news, Citigroup (C) downgraded the name to ‘Sell’ from ‘Neutral’ and slashed its 12-month base case estimate to $5.00 from 17.
GAIN Capital Holdings, Inc. (GCAP) was down pre-market in sympathy with FXCM. The name is bouncing however, in early trade after the company issued a press release where it provided further comments on yesterday’s extreme volatility in the Swiss franc.
GAIN said it generated a profit for the day, considering both trading profit and negative client equity, leveraging its robust risk management framework and heightened customer trading activity following the surprise announcements by the Swiss National Bank.
“Our strong risk-management framework allowed us to generate a profit on one of the most turbulent days for the global currency markets in recent years,” said Glenn Stevens, CEO of GAIN Capital.
GCAP shares recently lost $0.32, or 4.59%, to $7.96. The stock is down more than 4.80% year-over-year and has lost roughly 8.20% year-to-date. In the past 52 weeks, shares of Bedminster, New Jersey-based company have traded between a low of $5.89 and a high of $12.30.
GAIN Capital Holdings, Inc. closed Thursday at $8.28. The firm has a current total market cap of $329.15M.
Shares of E2open, Inc. (EOPN) are trading up more than 13.50% after the WSJ reported the company is working with BofA (BAC) to find a buyer following stock price plunge.
E2open, Inc., currently valued at $181.24M, has a median Wall Street price target of $7.00 with a high target of $10.00. In the past 52 weeks, shares of Foster City, California-based cloud-based provider have traded between a low of $5.21 and a high of $29.82 with the 50-day MA and 200-day MA located at $8.01 and $10.94 levels, respectively. Additionally, shares of EOPN trade have a Relative Strength Index (RSI) and MACD indicator of 29.24 and -2.22, respectively.
EOPN currently prints a one year loss of about 76.76% and a year-to-date loss of around 43.08%.
Activision Blizzard, Inc. (ATVI) shares gained more than 6% on Friday after the company delivered the top-selling console video game of 2014 with Call of Duty: Advanced Warfare and the top-selling kids video game in the world with Skylanders Trap Team.
“We’d like to thank our fans for making Call of Duty: Advanced Warfare the #1 top-selling video game in the world, Skylanders Trap Team the top-selling kids game in the world and Destiny the #1 new video game IP of 2014,” said in a statement Eric Hirshberg, CEO of Activision Publishing.
ATVI shares recently gained $1.20 to $19.75. The stock is up more than 7.72% year-over-year and has lost roughly 7.94% year-to-date. In the past 52 weeks, shares of Santa Monica, California-based company have traded between a low of $16.55 and a high of $24.18.