Ten companies mirrored a wider market downturn on Monday, as investors repositioned their portfolios in preparation for 2025.
On Monday, the Dow shed 0.97 percent or 418 points, while the S&P’s broader index decreased 0.95 percent or 56.48 points. The tech heavy Nasdaq registered the biggest decline, down 1.19 percent or 235.24 points.
In this article, let’s look at why some of the relatively larger-cap companies declined and what dragged down the performance of their shares.
Stock market data. Photo by Jakub Zerdzicki on Pexels
10. Joby Aviation, Inc. (NYSE:JOBY)
Shares of Joby Aviation, Inc. (NYSE:JOBY) on Monday registered a 6.05-percent decline to finish at $8.39 apiece, primarily due to profit-taking following Friday’s rally. In the past five trading days, shares in the company registered an 8.33-percent increase, while 30-day trading marked a 3.45-percent rally.
Despite the decline, prospects for the company remained strong as the company takes the front seat of innovation with its flying taxis, especially with the recent release of the Federal Aviation Administration’s powered-lift pilot certification and operation which will pave the way for the widespread use of air taxis.
According to Joby, it plans to conduct its first initial flight for its flying taxis in Dubai in the first half of 2025, with full commercial operations targeted in the second half of next year.
9. D-Wave Quantum Inc. (NYSE:QBTS)
Shares in D-Wave Quantum Inc. (NYSE:QBTS) decreased by 6.16 percent on Monday to end at $9.30 apiece, as investors sold off positions while waiting for further catalysts to bolster trading appetite.
Despite the decline, the company’s current valuation still marked a 16.32-percent increase in the past five days and an impressive 237-percent jump in the past 30 days, bolstered by quantum advancements led by Google’s Willow chips and Amazon’s Quantum Embark.
Analysts believe that prospects for the company remained robust especially with the quantum computing sector expected to be at the forefront of technological advancements, particularly AI, over the next few years.
US lawmakers also announced support for quantum computing development, recently promising $2.7 billion in government funding to supercharge quantum innovation across computing, sensing, and communications.
8. MARA Holdings, Inc. (NASDAQ:MARA)
Bitcoin miner MARA Holdings, Inc. (NASDAQ:MARA) registered a 6.24-percent decrease in its share prices on Monday to close at $17.29 each.
Investors appeared to be cautious about the company’s prospects, as seen in its past five and 30-day trading, having booked significant losses of 13.38 percent and 32.54 percent, respectively. The company was also down 24.6 percent year-to-date.
According to analysts, investor appetite was dampened by disappointing third-quarter results announced recently, including a $124.8 million net loss compared to a $64.1 million net income in the same period last year.
Revenues also missed analyst expectations by 8.8 percent, and earnings per share (EPS) missed estimates by 20 percent, further dampening investor sentiment.
7. NuScale Power Corporation (NYSE:SMR)
NuScale Power Corporation (NYSE:SMR) closed Monday’s trading down by 6.66 percent at $18.21 each. Its five-day and 30-day trading registered a 7.98-percent and 33.10-percent decrease, signaling investor uncertainty.
Analysts posted a more pessimistic outlook on the company, saying that its shares performance was dampened by expectations that the company does not seem to book profits until 2030 at the earliest. While valued at $3 billion in market capitalization, Nuscale Power (SMR) boasts less than $10 million in annual revenue and is losing $80 million a year.
Nuscale’s is a company engaged in designing and manufacturing small modular reactors (SMR), which are installed in vessels with a diameter of just 9 feet and a height of 65 feet. These smaller designs are modular and pre-fabricated, which means that they are delivered and assembled on-site, giving flexibility that reduces the costs and deployment time for a working nuclear reactor.
6. Aurora Innovation, Inc. (AUR)
Shares of Aurora Innovation, Inc. (NASDAQ:AUR), a self-driving vehicle technology company, reported a 6.77-percent decrease in its stock price to finish Monday’s trading at $6.47 each. In the past five trading days, the company’s stock price registered a 6.47-percent decline.
However, prospects for Aurora Innovation remained robust, even earning a bullish outlook from institutional investors recently.
Cantor Fitzgerald, an American financial services firm, was the most recent to join the bull’s camp for Aurora Innovation, giving the company an “overweight” rating and a price target of $10.
Cantor analyst Andres Sheppard emphasized Aurora’s clear commercialization roadmap, high-margin, asset-light model, and favorable regulation trends, noting that the company has logged over two million supervised miles, with plans to deploy tens of driverless trucks by late 2025.
5. IREN Limited (NASDAQ:IREN)
IREN Limited (NASDAQ:IREN) saw its stock price drop by 7.19 percent on Monday to finish the day at $9.94 each. In the past five and 30 trading days, the company also reported a decline of 15.33 percent and 21.24 percent in its valuations, respectively.
According to analysts, investors are on the sidelines awaiting the company’s expanding operations in Bitcoin mining, high-performance computing (HPC), and the booming AI sector.
An analysis by InvestingPro also recently said that IREN’s current valuation appears to be already “undervalued,” especially as it continues to make strides in expanding its operations and diversifying into the AI and HPC sectors.
The company also demonstrated impressive growth, with revenue surging 119.92 percent in the last twelve months and maintaining a robust gross profit margin of 87.67 percent, which could fuel a rally in the next few days.
4. QuantumScape Corporation (NYSE:QS)
QuantumScape Corporation (NYSE:QS), an American company that develops solid-state rechargeable lithium metal batteries for electric cars, registered a 7.73-percent decline in its share price on Monday to finish at $5.49 apiece.
In the past five and 30 trading days, the company’s valuation also marked an 8.5-percent and 5.58-percent increase, respectively. However, the year-to-date share price saw an 18.06-percent decline.
While there was no clear catalyst that would drag down the company’s share price, investors were believed to have sold off positions while waiting for fresh developments to perk up the market.
Quantumscape designs and manufactures superior lithium batteries. With automobile manufacturers recognizing that batteries with energy-storage capacity are necessary to make EVs viable, QuantumScape is poised to continue benefiting from the rapid growth of the EV market.
3. MicroStrategy Incorporated (NASDAQ:MSTR)
MicroStrategy Incorporated (NASDAQ:MSTR) saw its share price on Monday drop by 8.19 percent to end the day at $302.96 apiece. In the past five days, its valuation also marked a 15.43-percent decline while shares in the last 30 days were similarly down by 20.34 percent.
According to analysts, investor sentiment was weighed down by announcements that MicroStrategy was buying less and less Bitcoin compared with the week prior and was further dragged by lower Bitcoin prices.
The cryptocurrency was trading at around $92,500 recently, down from highs last week of around $99,000 and an all-time high of $108,000 set two weeks ago.
Just recently, MicroStrategy (MSTR) joined the Nasdaq 100, a significant milestone for the company and its shareholders. The Nasdaq-100 index represents 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
2. Rumble Inc. (NASDAQ:RUM)
Shares of Rumble Inc. (NASDAQ:RUM) saw a 9.13-percent decline on Monday, ending the day at $13.84 each as traders resorted to profit-taking following higher prices the day prior.
Despite the decline, Rumble’s five-day and 30-day trading shows continuous investor confidence, having booked an impressive growth of 38 percent and 101 percent, respectively.
Last week, the company announced that it entered into a definitive agreement for a strategic investment of $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.
1. Archer Aviation Inc. (NYSE:ACHR)
Archer Aviation Inc. (NYSE:ACHR), a company engaged in designing and manufacturing electric vertical takeoff and landing (eVTOL) aircraft, became Monday’s biggest loser, shedding 10.02 percent to end the day at $10.06 apiece.
Despite Monday’s decline, its past five and 30 trading days still registered a 4.36-percent and 37.81-percent increase in share prices, respectively.
According to analysts, investor sentiment was dampened by news that the company was doubling the number of common stock available and changing requirements for board membership and ownership. This, in turn, would dilute shares because it increases the number of shares available and lowers the value of existing shares.
In a regulatory filing, the company reported that investors voted in favor of amending its certificate of incorporation “to increase the number of authorized shares of the Company’s Class A common stock available for issuance from 700 million to 1.4 billion.”
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