Ten companies—mostly under the quantum computing sector—kicked off the trading week leading declines amid not-so-optimistic statements from chief executives and disappointing earnings updates that have weighed in on investor sentiment.
Meanwhile, Wall Street’s main indices ended mixed, with the Dow Jones and S&P’s main index the only gainers, up 0.86 percent and 0.16 percent, respectively. Meanwhile, the Nasdaq Composite dropped by 0.38 percent.
In this article, we will take a look at what dragged the companies’ share prices.
To come up with Monday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A stock market data shown on a tablet. Photo by Burak The Weekender on Pexels
10. Joby Aviation Inc. (JOBY)
Joby Aviation (JOBY) kicked off Monday’s trading on a sour note, losing 8.92 percent to close at $7.96 after investment research firm JP Morgan downgraded its outlook for the company to “underweight” from “neutral” previously.
JP Morgan analyst Bill Peterson said he believes it was already time for an “altitude adjustment” for the electric vertical take-off and landing (eVTOL) company. His Joby rating went to “sell” from “hold,” but increased the target for the stock price to $6 from $5.
The “stocks began to inflect in the month leading up to the election and have sustained the outperformance over the rest of Clean Tech [sector] since the Trump victory,” Peterson said.
Joby, along with its counterpart Archer Aviation, “are trading as though [aircraft] type certification has already been successfully completed,” he said. Both are likely seen as “speculative tech beneficiaries aligned with the likes of retail favorites such as Tesla …and Rocket Lab,” he said.
9. SoundHound AI Inc. (SOUN)
Shares of SoundHound AI (SOUN) fell for a fifth day on Monday, shedding another 9.01 percent to finish at $12.82 each as investors resumed unloading portfolios after Meta Platforms CEO Mark Zuckerberg shared the same view as Nvidia Corp. CEO Jensen Huang that the practical use of quantum computers is still years away.
“I’m not really an expert on quantum computing, but my understanding is that’s still quite a ways off from being a very useful paradigm,” he said during an appearance on Joe Rogan’s podcast published on Friday, adding that many people think the technology is likely a “decade plus out.”
SoundHound AI (SOUN) specializes in voice AI technology, enabling natural language understanding and voice recognition for a wide range of applications. Its solutions power voice assistants, smart devices, and enterprise platforms, allowing businesses to integrate conversational AI for customer interactions.
8. Oklo Inc. (OKLO)
Oklo’s (OKLO) share price fell by 9.35 percent on Monday, ending the day at $22.88 apiece after analysts cautioned about the risks of speculating in sectors such as nuclear power and quantum computing, suggesting it could take a long time before these fields generate meaningful returns.
Jim Cramer, host of Mad Money, said that nuclear and quantum computing sectors both have promise someday, but still not enough to justify their current valuations.
He clarified that while he does not view quantum computing as a hoax, he considers the current expectations surrounding the technology to be overly ambitious. The market, according to Cramer, is setting a low bar for progress in this area.
7. Aurora Innovation Inc. (AUR)
Autonomous driving company Aurora Innovation (AUR) dropped for a third day on Monday as investors continued to sell off positions while waiting on the sidelines after the company sued the US Department of Transportation for arbitrarily rejecting the industry’s idea for an alternative solution.
The complaint was filed in the DC Circuit Court of Appeals on Friday.
According to Aurora (AUR), the department’s decision “stifles safety innovation and would impede the development of the autonomous trucking industry for no valid or lawful reason.”
The case stemmed from an application filed by Aurora and fellow self-driving vehicle manufacturer Waymo, in January 2023 seeking an exemption to existing rules that require truck drivers to exit their vehicle and place reflective triangles or flares on the roadway when stopped on the shoulder of a highway.
The companies sought permission for driverless trucks to instead use ultra-bright, cab-mounted warning beacons similar to those used by highway construction vehicles. On December 26, the department rejected the request.
6. Rocket Lab USA Inc. (RKLB)
Rocked Lab (RKLB) tumbled by 11.15 percent on Monday, a fourth consecutive day, to finish at $23.91 each following a statement that appears to be a jab at the National Aeronautics and Space Administration (NASA), unveiling its own plan to return rock and dust samples that the latter has been collecting from Mars’ Jezero Crater since 2021.
Earlier this week, NASA said that it needed more time to determine the path forward for its Mars Sample Return program, punting a decision until mid-2026. But Rocket Lab believes the best solution is right under the agency’s nose.
“We can wait another year, or we can get started now,” the company wrote in a post on X. “This is not our first encounter with the Red Planet. The orbiters, rovers, landers, and helicopters of Mars all bear Rocket Lab’s fingerprints. We can deliver MSR mission success too.”
5. Edison International (EIX)
Edison International (EIX) saw its share prices fall for the sixth straight day as traders sold off positions amid the ongoing Los Angeles wildfire that resulted in dozens of deaths and billions worth of damages.
The company is currently under public scrutiny and is now facing multiple lawsuits over allegations that its equipment was the source of wildfires.
Edison over the weekend said that it was helping investigate the wildfire after discovering a downed conductor at a tower near the area where the Hurst Fire broke out on Tuesday evening.
Edison, however, said it was uncertain whether the damage occurred before or after the fire.
At present, Edison said some areas may continue to be de-energized in the coming weeks for public safety and to prevent any further wildfire conditions.
4. Tempus AI Inc. (TEM)
Tempus AI (TEM) fell by 13.81 percent on Monday to end at $32.34 each after fourth-quarter forecasts fell below Wall Street expectations.
In preliminary results released on Monday, the company said it expected revenues for the fourth quarter of the year to settle at $200 million, an increase of around 35 percent year-on-year. However, Wall Street analysts said they projected figures to settle at $205.7 million.
Tempus AI CEO Eric Lefkofsky said that genomics revenue is expected to rise by 30% in the fourth quarter, while data and services revenue is expected to be up 45%.
Tempus is an AI company focused on medicine and healthcare. In other news, it said that it was also developing its first whole-genome sequencing test.
3. IonQ Inc. (IONQ)
IonQ (IONQ) shares, alongside its quantum computing peers, tanked by 13.85 percent on Monday to close at $27.86 each as investor sentiment was weighed down by Meta Platforms CEO Mark Zuckerberg’s not-so-optimistic statement on quantum computers.
Zuckerberg joined Nvidia Corp. CEO Jensen Huang in having a more conservative outlook for quantum computing stocks. The statements indicated that quantum computing shares’ current valuations are currently overvalued.
“I’m not really an expert on quantum computing, but my understanding is that’s still quite a ways off from being a very useful paradigm,” he said during an appearance on Joe Rogan’s podcast published on Friday, adding that many people think the technology is likely a “decade plus out.”
2. Abercrombie & Fitch Co. (ANF)
Abercrombie (ANF) fell by 15.66 percent on Monday to end the day at $135.72 after the company’s recent earnings performance came in short of last year’s blockbuster growth.
On Monday, Abercrombie revised its sales forecast for the fourth quarter of 2024 to 7-8%, an increase from the 5-7% range previously, but still below the double-digit growth experienced in the same period in 2023.
In addition, it raised its full-year net sales growth outlook to around 15% from the previous range of 14-15%. The operating margin outlook for both the fourth quarter and full year remains at around 16% and 15%, respectively.
The revised forecast aligns with a broader trend among retailers which have also reported lower-than-expected holiday season demand.
Abercrombie is a leading global specialty retailer of apparel and accessories. It owns brands Abercrombie & Fitch, YPB, abercrombie kids, Hollister, and Gilly Hicks.
1. Moderna Inc. (MRNA)
Moderna (MRNA) fell the largest on Monday, slashing 16.8 percent to close at $35.15 each after projecting a steep decline in its 2025 revenues to between $1.5 billion to $2.5 billion as compared with $3.1 billion in 2024 and $19 billion at the peak of the Covid-19 pandemic.
The lower earnings projection came on the heels of lower vaccine demand for COVID-19 vaccines and slow adoption of its respiratory syncytial virus (RSV) shot, forcing Moderna to cut costs.
Moderna CEO Stéphane Bancel said that the vaccine maker aims to reduce 2025 cash costs by $1 billion with a plan for an additional $500 million in 2026. It expects to end 2025 with cash and investments of about $6 billion.
The company is also betting on new products to help accelerate growth. It has filed an application with the US FDA for the approval of its combination vaccine to protect against COVID-19 and influenza.
While we acknowledge the potential of MRNA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
