The stock market was lackluster on Thursday, with Wall Street’s main indices ending the day with marginal declines.
The Dow Jones Industrial Average dipped by 0.16 percent, the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.
Ten companies mirrored the decline on Wall Street over a series of catalysts including uncertain government policies and disappointing earnings results.
Let’s take a closer look at the worst performers and explore the factors behind their declines.
To come up with Thursday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Stock market data. Photo by Alesia Kozik
10. Texas Instruments Inc. (NASDAQ:TXN)
Texas Instruments (TXN) saw its share prices drop by 5.13 percent on Thursday to end at $187.37 apiece as investors sold off positions following news that the Chinese government kicked off a probe into US chipmakers, particularly to look into chip grants and alleged dumping, to ensure that the US was not unlawfully subsidizing chipmakers and undercutting Chinese products.
The investigation followed complaints from Chinese semiconductor companies about the US Chips Act which allocates some $39 billion to encourage Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. to develop high-end chipmaking facilities in the US.
The China Semiconductor Industry Association criticized the act, claiming that it disrupts the semiconductor supply chain and violates market economy principles.
Texas Instruments (TXN) owns a semiconductor manufacturing plant in the Chengdu High-Tech Zone in Chengdu.
9. Snap Inc. (NYSE:SNAP)
Snapchat’s parent firm Snap Inc. (SNAP) booked a 5.24-percent decline in share prices on Thursday, with investor sentiment dampened by news that the Federal Trade Commission (FTC) is set to refer a complaint against the company to the Department of Justice.
The FTC’s non-public complaint stemmed from allegations that Snapchat’s My AI chatbot used an artificial intelligence chatbot that “poses risks and harms to young users.”
Meanwhile, a representative from Snap debunked the claims, saying that its MyAI incorporates “rigorous safety and privacy processes” and that the FTC’s complaint “lacks concrete evidence.”
The FTC said that its probe “uncovered reason to believe Snap is violating or is about to violate the law.”
8. Terawulf Inc. (NASDAQ:WULF)
Terawulf Inc. (WULF)’s shares declined by 5.34 percent on Thursday to close at $5.85 apiece as investors resorted to profit-taking following a nearly 11 percent gain from the previous trading.
The decline was also in line with the drop in Bitcoin prices which, at the time of writing, was lower by 0.46 percent at $99,981 apiece.
In other news, investors are in a wait-and-see mode for more updates on the cryptocurrency industry under the incoming Trump administration. A strong crypto market was initially anticipated due to President-elect Donald Trump’s pro-cryptocurrency stance.
The industry is also hoping for a potential easing of regulatory crackdown, particularly with the reappointment of Paul Atkins to lead the Securities and Exchange Commission. His return could signal a shift in the regulatory landscape, potentially benefiting the crypto market.
7. Peloton Interactive Inc. (NASDAQ:PTON)
Shares of Peloton Interactive (PTON) decreased by 5.35 percent on Thursday to $8.49 apiece as investor sentiment was weighed down by the lack of catalysts to spark buying appetite.
Investors also appeared to be on the sidelines waiting for fresh updates from the company after the installation of Peter Stern as its new chief executive officer effective last January 1, replacing Barry McCarthy who stepped down from his position in May last year.
According to Jay Hoag, chairperson of the Peloton Board: “Peter is a seasoned strategist with a track record of driving sustainable growth through innovation, and we have every confidence in his ability to lead Peloton during this important time. He brings meaningful expertise in scaling differentiated technology-oriented platforms and has a deep understanding of the health and wellness sector – making him uniquely suited to serve as Peloton’s next CEO.”
6. US Bancorp. (NYSE:USB)
US Bancorp. (USB) dropped its share prices by 5.64 percent on Thursday at $48.03 each with analysts pointing to non-impressive earnings performance in the fourth quarter of the year as having weighed down investor sentiment, despite it nearly doubling net income to $1.67 billion.
According to an analyst, investors were spooked by the company’s higher expenses, with non-interest costs climbing 2.5 percent and provision for credit losses rising by 9.4 percent year-on-year, a sign of ongoing stress in the commercial real estate and credit card loans.
For this year, US Bancorp (USB) said it remained optimistic about its business outlook after a bumpy road in 2024.
“It was effective balance sheet management, our financial discipline, and expanding interconnectedness across the franchise that enabled us to fully deliver the strong results we did this quarter, and [we] fully expect that momentum to continue into 2025,” US Bancorp. CEO Andy Cecere said.
5. Exact Sciences Corp. (NASDAQ:EXAS)
Shares of Exact Sciences (EXAS) dropped 5.75 percent on Thursday to finish at $50.44 as investors repositioned their portfolios ahead of the release of its full-year 2024 performance next month.
While net income projections have not been indicated, preliminary results released over the weekend said that Exact Sciences expects a double-digit increase for total revenues and screening revenues in the fourth quarter and full year of 2024.
Investors, however, are in a wait-and-see mode, closely watching whether the company has achieved profitability or managed to reduce its net loss for the full year.
In 2023, it can be learned that Exact Sciences reported a $49.8-million net loss, representing $0.27 per share.
Exact Sciences (EXAS) is a leading provider of tests for cancer prevention, early detection and screening, and therapy guidance.
4. Infosys Ltd. (NYSE:INFY)
Shares of Infosys (INFY) on Thursday declined by 5.73 percent to finish at $21.57 apiece, discounting news of improved revenue performance in the third quarter of last year.
According to Infosys’ recent earnings report, its revenues improved by 0.92 percent to $4.94 billion, beating analysts’ expectations. A Bloomberg poll of analysts had expected Infosys to report a revenue of $4.81 billion for the quarter.
Infosys (INFY) has upgraded its revenue growth forecast for fiscal year 2024-25 to a range of 4.5-5% in constant currency terms, up from its previous projection of 3.75-4.5%. At the start of the fiscal year, the company had initially set a more conservative growth target of 1-3% in constant currency terms.
3. UnitedHealth Group Inc. (NYSE:UNH)
UnitedHealth Group (UNH) dropped its share prices by 6.04 percent on Thursday to end at $510.59 apiece following twin news of worse-than-expected revenues and that it was overcharging patients by more than 1,000 percent for key life-saving drugs.
Earlier this week, UnitedHealth said revenues settled at $100.81 billion during the fourth quarter of the year, below estimates of $101.76 billion as the company was hit by premiums that were lower than expected.
Net earnings, on the other hand, ended above expectations at $6.81 per share versus analyst expectations of $6.72 apiece.
The company kept its 2025 adjusted net earnings forecast of $29.50 to $30 a share the same.
Meanwhile, the Federal Trade Commission announced on Wednesday that UnitedHealth was found overcharging life-saving drugs by over 1,000 percent. According to the report, UnitedHealth’s OptumRx, along with Cigna’s Express Scripts and CVS Caremark Rx, were able to collectively pocket $7.3 billion in added revenue above cost during the five-year period of the study through 2022.
2. Sibanye Stillwater Ltd. (NYSE:SBSW)
Shares of Sibanye Stillwater (SBSW) declined by 6.08 percent on Thursday to end at $3.4 apiece as investor sentiment was weighed down by growing tax uncertainties on all imported goods to the US, especially as president-elect Donald Trump already signaled to slap taxes on imports from all countries.
Sibanye Stillwater, a multinational mining company with operations across five continents—North America, South America, Europe, Africa, and Australia—stands to be hurt by any potential tariff impositions that could dampen demand and affect its profitability and market competitiveness.
In other news, Sibanye recently announced laying off 700 employees at its Montana mining as part of a restructuring, due in part to a dive in palladium prices and the loss of over $350 million in Montana in 2023. The recent job cut followed the first 100 layoffs in November.
The company is the largest employer in Stillwater County, employing people from across south-central and southeastern Montana.
1. Polestar Automotive Holding UK Plc (NASDAQ:PSNY)
Swedish automaker Polestar Automotive (PSNY) became Thursday’s biggest loser, with its share prices diving by 11.07 percent to end at $1.08 apiece.
Investors sold off positions after the company released disappointing earnings results for the first nine months of the year.
According to the company, revenues for the third quarter declined by 10 percent to $550.7 million from $608.6 million year-on-year, dragging down its nine-month revenues by 21 percent to $1.45 billion from $1.85 billion year-on-year.
Polestar pointed to lower global vehicle sales of Polestar 2, coupled with higher discounts in a highly competitive market, and a delay in sales ramp-up of new carlines as having weighed on revenues.
Given the disappointing earnings results, Polestar also adjusted its full-year 2024 targets.
“The company now expects a mid-teens percentage decline in revenue and a negative gross margin around the same level as the full year 2023…Other one-time events also contributed to a difficult [fourth quarter], including a market value adjustment of inventory as well as continuing market pressure from discounting. A solid order intake for new models in late [fourth quarter] signals an encouraging start to 2025,” it said.
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Disclosure: None. This article was originally published at Insider Monkey.
