Among the major factors that can lead to a fall in the Walmart stock price include losing products, broker downgrades, missed earnings, failed acquisitions, changes in management, new laws and regulations, and lawsuits. These factors all have the power to influence supply and demand, claims howtoinvesthq.com.
Competition among companies contributes hugely on the fall of stock prices. For instance, when two companies are competing to win a massive contract; stock prices for both companies will rise with expectation.
However, the company that wins the contract will carry the day. Its stock will remain high while that of the company that lost the contract will go down, says howtoinvesthq.com.
In the pharmaceutical industry, competition has a major foot hold. If one company develops a new and better drug that others do not have, it can charge a high price for that drug. Its stock prices remain high until a competitor develops a better or similar drug at a cheaper price, claims howtoinvesthq.com.
One the flip side, there are factors that catalyse the rise of stock prices. For instance, when a stock experiences an upgrade by a major broker, the prices are likely to go up. Announcement of a new product or its release date can give a company a great boost as was the case with Apple when it announced the release of the first iPhone, says howtoinvesthq.com.