Analysts at MKM Partners sent Michael Kors Holdings (KORS) stock tumbling 1% to $35.54 in premarket trading Tuesday after the firm initiated coverage of the company with a "sell" rating and $26 price target.
The price target represents a potential downside of 27% from the stock's previous closing price.
The firm says that there is a slow infusion of innovation at the company and there is a threat that Kors will shift its focus to lower margin products.
"Operating margin is structurally headed lower from the shift to retail, investments in omni-channel, and product mix shift to lower margin categories," analyst Roxanne Meyer wrote.
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The watch was made in conjunction with Alphabet's (GOOGL - Get Report) Google and Qualcomm Technology (QCOM - Get Report) and starts at a lofty $2,450. It works with both Apple and Android devices, and is the first Android Wear smartwatch that functions in China.
Yes, it's Amazon Prime Day: Although many probably have Amazon (AMZN - Get Report) Prime Day fatigue right now, that doesn't mean they won't be spending aggressively on big digital deals. Amazon stands to ring up more than $2 billion in sales worldwide during the 30-hour sale known as Prime Day, Internet Retailer predicts. The gain would mark about a 21% increase from a year ago. U.S. sales alone are pegged at $1.56 billion, up 20% from last year, TheStreet reports.
Bitcoin has crashed: Traders that have rode the wave higher in Bitcoin via cryptocurrency plays such as Advanced Micro Devices (AMD - Get Report) and Nvidia (NVDA - Get Report) may want to reconsider their bullishness. Bitcoin prices entered into bear market territory Tuesday, TheStreet reports, as an embarrassing legal case kicked off in Japan and experts continue to squabble over key changes to the cryptocurrency's infrastructure.
Bye-bye regulations: President Trump late Monday nominated former Treasury official Randal Quarles as the Federal Reserve's top bank supervisor. As TheStreet's Ron Orol reports, the nomination could lead the way to a dismantling of many Obama Administration bank regulations and is one that is expected to send a positive signal for now to big and regional bank stocks. Orol points out that the appointment could boost bank stocks such as Bank of America (BAC - Get Report) , Wells Fargo (WFC - Get Report) , Citigroup (C - Get Report) and Goldman Sachs (GS - Get Report) in the near-term.
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