Last week, phone accessory company ZAGG Inc (NASDAQ:ZAGG) had a pretty successful time. It released four brand-new products: a new curved-glass screen protector for the Samsung S8; a full-body discreet glass case for the iPhone 8, 8s and X; and a new durable keyboard and case for the iPad. ZAGG also participated in the highly-esteemed 20th annual ICR Conference in Florida.
Unfortunately, stock prices for the company were barely affected at all by the releases. That is, until today when the stock actually plummeted – seemingly without reason – from $18.60 last Friday to $15.45 today, making for a loss of -17.2% over the weekend. This brings ZAGG’s market cap to $431.5m.
It’s all a bit mysterious, especially since ZAGG’s stock value has actually been steadily climbing for months. Indeed, over the past half a year, share prices have increased 80.1%, and that’s taking into account today’s cliff-dive.
Source: Yahoo finance
But the question remains: what caused the drop? The most likely cause is that shareholders have been disappointed by the lack of interest resulting from ZAGG’s announcements last week. As the weekend drew closer and it became apparent that shares weren’t going to poke up, they simply sold while they could, causing today’s sharp decline as trading resumed. Not a great result for the number one selling screen protection brand.
It could also be that ZAGG is facing stiff competition. The price for its – albeit premium-quality – Invisibleshield Glass + Luxe 360 iPhone protector is priced at a pretty eye-watering $69.99. Priced as it is to marry discreteness with functionality, it is still a good deal more expensive than most of the other up-to-date iPhone cases, which, although bulkier and less pretty, are much cheaper at around $40. The same goes for the Samsung (OTC:SSNLF) equivalent. When many people have already forked out several hundred for a brand-new phone, it could be they are unwilling to spend premium prices yet again for a screen protector.
Speculation aside, trading has stopped at the time of writing, and after hours exchanges are showing very slight signs of recovery as the afternoon draws to a close. It will be interesting to see whether investors are driven even further away tomorrow or if things will recover.
Featured Image: twitter
