The stock market finished the first trading day of the year in the negative territory—a fifth straight day, over the lack of catalysts to spark trading appetite.
The Dow Jones Industrial Average was down the most by 0.36 percent, the S&P 500 decreased 0.22 percent, and the Nasdaq Composite dipped 0.16 percent.
Ten companies also kicked off trading mirroring the broader market downturn. In this article, let’s explore the reasons behind their decline.
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.
A stock market graph. Photo by energepic.com
10. Aurora Innovation Inc. (NASDAQ:AUR)
Share prices of Aurora Innovation dropped for a fourth consecutive day on Thursday as investors continued to sell off positions over concerns that the US electric vehicle (EV) industry is now being dominated by Chinese EV makers.
Former Nissan executive Andy Palmer, often called the “Godfather of EVs,” recently told Business Insider that China is now the undisputed leader in EV manufacturing. The statement came as a stern warning to US and European automakers namely Tesla, GM, Volkswagen, and other EV makers which employ 4.3 million workers.
Investor sentiment was further dampened by news that sales of EV giant Tesla (NASDAQ: TSLA) fell for the first time in history, having only delivered 1.79 million vehicles during the year as compared with the 1.81 million in 2023, raising concerns about vehicle sales from other automakers such as GM.
9. Teva Pharmaceuticals Industries Ltd. (NYSE:TEVA)
Shares of Teva Pharmaceuticals fell for a third day on Thursday, shedding another 3.34 percent or 0.74 points to finish at $21.3 apiece, as investors awaited further developments on its schizophrenia treatment Tev’749.
While the asset showed statistical improvement in schizophrenia symptoms during its Phase III trial, some experts raised concerns about the drug’s twice-daily dosing schedule, saying that the effectiveness of treatment often hinges on consistent medication, which can be particularly challenging for patients with schizophrenia.
In other news, the company recently made progress with its Duvakitug drug, developed with its French counterpart Sanofi, which met its primary goals of treating ulcerative colitis and Crohn’s disease.
Last year, the two firms announced a partnership to develop treatments for inflammatory bowel disease (IBD), with hopes that the drug could achieve a blockbuster status and generate at least $1 billion in annual sales.
8. TeraWulf Inc. (NASDAQ:WULF)
Shares of Bitcoin miner TeraWulf on Thursday declined by 3.53 percent or 0.20 points to end at $5.46 apiece, mirroring a broader market downturn.
According to analysts, investors remained in a wait-and-see mode following growing concerns over rising Bitcoin mining costs which have been significantly impacting the company’s financial performance.
In its recent filing, TeraWulf reported a loss of $0.06 per share in the third quarter of the year, worse than the expected loss of $0.03 per share.
To offset higher Bitcoin mining costs, the company announced earlier that it would lease more than 70 megawatts of data center infrastructure to AI and cloud provider Core42 to expand its artificial intelligence revenue.
7. General Motors Co. (NYSE:GM)
Shares of General Motors Co. fell for a third day on Thursday, losing 3.57 percent or 1.90 points to finish at $51.37 apiece as investors sold off positions over concerns about automakers’ vehicle sales.
The decline came after Tesla (NASDAQ: TSLA) fell for the first time in history, having only delivered 1.79 million vehicles during the year as compared with 1.81 million in 2023.
In addition, concerns were hounding US and European automakers following statements that Chinese EV makers are already taking the front seat in the industry.
Meanwhile, China’s BYD posted its best-ever sales in the fourth quarter of 2024.
According to the company, it sold 1.76 million electric cars in 2024. The total was only part of the 4.25 million car sales, which included its hybrid vehicles.
6. UWM Holdings Corp. (NYSE:UWMC)
American mortgage lender UWM Holdings kicked off the first trading day of the year on a sour note, with its share price losing 3.92 percent or 0.23 points to finish at $5.64 apiece.
Investor sentiment seemed to have been dragged by news that higher mortgage rates, scarce inventory, and dismal affordability are plaguing the US property market and are set to linger until the end of the year.
At present, mortgage fees remained at a decades-long high, dampening demand for mortgage applications by 22 percent at the end of December.
Granted, December is typically the slowest month for home buying activity, but with the central bank now signaling caution around the pace of further rate cuts this year, hopes have been shelved that mortgage rates will fall sharply anytime soon.
5. United States Steel Corp. (NYSE:X)
Shares of United States Steel finished the first trading day of the year in the red, shedding 4.09 percent or 1.39 points at $32.60 each as investors pocketed early gains following a 9.54-percent rally in the previous trading day.
Investors remained in a wait-and-see mode following news that the company is set to be acquired by Japanese company Nippon Steel for $14.9 billion, pending approval of outgoing president Joe Biden.
According to reports, the acquisition plan remains under review due to national security concerns from the Treasury Department’s Committee on Foreign Investment in the United States (CFIUS).
The revised proposal by Nippon Steel included a provision granting veto power to the federal government over any reduction in production capacity, should the acquisition secure approvals.
4. Rumble Inc. (NASDAQ:RUM)
Rumble Inc.’s shares dropped for a fourth day, losing 4.69 percent or 0.61 points to end at $12.40 each amid the lack of fresh catalysts to perk up buying.
Prospects for Rumble, however, remained positive after the company recently clinched a strategic investment worth $775 million from Tether, the largest company in the digital assets industry and the most widely used dollar stablecoin globally with more than 350 million users.
Over the last few years, Tether has become one of the most recognized symbols of financial inclusion.
According to Rumble (RUM), a total of $250 million of the proceeds will be used to support growth initiatives, and the remaining proceeds to fund a self-tender offer for up to 70 million Class A common shares.
3. JetBlue Airways Corporation (NASDAQ:JBLU)
Shares of JetBlue Airways declined for a second day on Thursday, losing 4.83 percent or 0.38 points to end at $7.48 apiece as investors were in a wait-and-see mode for any developments on its rumored merger with a new airline.
Following its merger attempt with Spirit Airlines, rumors are spreading that Alaska Airlines, which recently merged with Hawaiian Airlines, is interested in acquiring JetBlue.
The company has long maintained that the only way for it to grow is to expand through mergers and acquisitions. It is looking to break into the top four and join American, United, Delta, and Southwest as the biggest domestic airlines.
If proven true, the company will still have to secure regulatory approval. Merger prospects, however, remained positive for the company especially with the incoming Trump administration being more amenable to airline mergers than previous administrations.
2. Bilibili Inc. (NASDAQ:BILI)
Video streaming platform Bilibili Inc. saw its share price on Thursday decline by 5.41 percent or 0.98 points to end at $17.13 following disappointing earnings results.
According to the company, it generated $1.019 billion in revenues but reported a net loss of $11.09 million, resulting in an earnings per share of -$0.03 and a gross profit of $355 million.
The company earlier expected to post a final loss in 2024 before swinging to profitability in 2025.
According to analysts, they expect the company to grow 82 percent year-on-year, on average. Should the business grow at a slower rate, it will become profitable at a later date than expected.
1. SoFi Technologies Inc. (NASDAQ:SOFI)
SoFi Technologies dropped for a fourth day on Thursday, losing 8.25 percent or 1.27 points to end at $14.13 each following a rating downgrade from Keefe, Bruyette & Woods’s Timothy Switzer.
Prior to market open, analysts at the brokerage firm rated the stock “underperform” and shaved its price target to $7 from $8 previously.
“The stock’s valuation has become overstretched across a wide matrix of multiples,” the brokerage firm said, referring to its lofty valuation and ambitious financial targets.
A strong economy, lower interest rates, and the company’s “success driving better scale and profitability… justifies shifting our investment thesis towards a more long-term view of what a mature SoFi looks like,” it added.
While we acknowledge the potential of SOFI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
