What does the decrease in stock mean for ADS? This is a serious question, because I really don’t know. I do know that, the lower the stock goes then the lower my 401k funds go. Informative answers only please.
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You broke. Appears this stock is headed to be a penny stock. Unless management can turn this ship around it will never come back.
The market was down this past week, ADS stock had been going down for years, yeah the chances are it’ll jump back up to where it was a week or so ago, there is little to no evidence it will get back anywhere close to what it was.
If you’ve been hanging onto the stock while it has been dropping the last couple of years you’ve missed the opportunity to have been growing your money in one of the other index funds that are available as part of the program, so in essence you have been “losing money” by leaving it in the wrong place.
Technically you haven’t lost anything at this point. Yes the balance is lower because the share price is lower. However, that loss is not locked in unless you were to sell the shares now.
If you wait it out and IF it rebounds with the market, you will regain the value and all will be ok.
Right now with the market issues going on, it is a tough decision where to put money.
If you look at other big successful stocks, they have taken a beating this week as well. Look at percentages not share price. If say APPLE dropped 8-10% (not factual) and your stock dropped about the same percentage, then you are just in the same boat as everyone and riding thru a market correction.
This is a pretty good introduction: https://www.investopedia.com/investing/why-do-companies-care-about-their-stock-prices/
I’d suggest looking at the fund allocation in your 401k. Most of the mutual funds available have been performing really well the past couple years prior to this recent market scares (coronavirus related) ADS stock might recover mildly but that’s a pretty big unknown at this point. Personally I never participated in the the stock purchase program (started in 2013 when it was about $230 a share). If the company goes to sh– then you are going to lose money on the stock AND be out of a job.