Wall Street extended its winning streak on Wednesday, with all of its main indices closing in the green territory, as investors seemed to have already factored in the news of tariffs imposition alongside uncertainties surrounding the Artificial Intelligence industry.
The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.
Ten companies, however, defied a broader market optimism, mostly due to disappointing earnings results. This article details the reasons behind the drop in their share prices and latest earnings performance.
To come up with Wednesday’s biggest losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Stock market charts. Photo by Kaboompics.com on Pexels
10. Varonis Systems Inc. (NASDAQ:VRNS)
Shares of Varonis dropped by 7.41 percent on Wednesday to finish at $43.37 apiece after a number of investment research firms downgraded their outlooks for the company.
Following the release of Varonis’ 2024 performance, UBS lowered its price target for the company to $60 from $70 previously, albeit maintaining a “buy” rating.
Meanwhile, Wells Fargo trimmed its stock price target for Varonis to $46 from $48 previously while retaining an “equal weight” outlook.
During the fourth quarter of the year, Varonis said net loss widened by 1,346 percent to $12.99 million from only $898,000 registered in the same period last year, despite revenues inching up by nearly 3 percent to $158 million from the $154 million registered in the same period a year earlier.
Meanwhile, net loss in full-year 2024 narrowed by 5 percent to $95.76 million from $100.9 million year-on-year, while revenues jumped by 10.37 percent to $550.95 million from $499.16 million in 2023.
9. Uber Technologies Inc. (NYSE:UBER)
Transport network company Uber Technologies saw its share prices decline by 7.56 percent on Wednesday to end at $64.48 apiece as investors shunned the company’s strong 2024 earnings performance and instead took the path from an unclear 2025 outlook guidance.
In a statement, Uber said attributable net income in the fourth quarter of 2024 surged by 381 percent to $6.88 billion from the $1.43 billion registered in the same period in 2023, which includes a $6.4 billion benefit from a tax valuation release and a $556 million benefit due to net unrealized gains related to the revaluation of Uber’s equity investments. Revenues for the quarter increased by 20 percent to $11.96 billion from $9.9 billion year-on-year.
For the full year 2024, attributable net income soared by 422 percent to $9.86 billion from the $1.89 billion registered in 2023, while revenues increased by 18 percent to $43.98 billion from $37.28 billion year-on-year.
For 2025, Uber only provided an outlook of 17 to 21 percent increase in gross bookings to between $42 billion to $43.5 billion, as well as a 30-percent target for adjusted EBITDA between $1.79 billion and $1.89 billion.