10 Firms Mirror Dow Jones Decline on Monday

Ten companies kicked off this week’s trading mirroring a decline on Dow Jones with a series of catalysts dampening investor sentiment. In this article, let’s explore the reasons behind their decline.

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 woman reading and analyzing stock market data. Photo by Artem Podrez on Pexels

10. SoundHound AI Inc. (NASDAQ:SOUN)

Shares of SoundHound AI snapped a two-day winning streak, closing down by 3.54 percent to $19.89 apiece as investors resorted to profit-taking.

According to analysts, investors sold off positions following Friday’s news that its rival Cerence expanded its partnership with technology giant Nvidia Corp. (NVDA) to enhance its CaLLM (Cerence Automotive Large Language Model) family of language models.

The collaboration aims to accelerate the development and deployment of generative AI for automotive applications, integrating both cloud-based and embedded solutions such as CaLLM Edge.

Despite the drop, prospects for SoundHound remained strong, fueled by the booming AI industry which allowed for a more bullish coverage.

Last week, SoundHound AI earned a buy rating and a higher target price from HC Wainwright from $8 per share to $26 apiece.

While Wainwright’s analysts noted that recent valuation gains were primarily driven by market excitement, they believed the company would perform well enough to support its growth-dependent valuation.

9. Kimco Realty Corp. (NYSE:KIM)

Kimco Realty, a real estate investment trust specializing in grocery-anchored shopping centers, saw its share prices on Monday lose 3.58 percent to end at $22.34 apiece, with the company seeing an overall bearish sentiment.

According to analysts, Kimco—which marginally increased over the past three months—was already underperforming the S&P 500 index’s 4 percent gain.

In addition, Kimco’s 6.9-percent gain over the past 52 weeks lagged behind S&P’s 27-percent gain.

Analysts said the ongoing investor pessimism may have been dampened by the increase in its pro rata interest expense fueled by higher debt levels and the company’s lowered disposition outlook by $50 million.

Despite Kimco’s underperformance, analysts remain moderately optimistic about its prospects. It earned a consensus rating of “Moderate Buy” from 22 analysts covering it.