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.
8. Medical Properties Trust Inc. (NYSE:MPW)
Shares of Medical Properties Trust declined by 3.99 percent on Monday to end at $3.99 apiece. Over the past five days, the company saw its share price grow by 9.02 percent, while the 52-week valuation marked a 17.7 percent gain.
Earlier this week, the company’s stock earned a “hold” rating from seven analysts covering the company, indicating a more neutral outlook.
Zack Research, for its part, said that Medical Properties is expected to post earnings of $0.16 per share, indicating a change of -55.6 percent from the same period last year. The Zacks Consensus Estimate has changed -10.2 percent over the last 30 days.
Meanwhile, Truist Financial recently cut its target price on the company from $6.00 to $4.00, while Mizuho reduced its price objective from $6.00 to $5.00. Finally, Wolfe Research recently upgraded the company’s shares to a “hold” rating.
7. Geron Corp. (NASDAQ:GERN)
Shares of Geron Corp. decreased by 3.92 percent on Monday to finish the day at $3.43 apiece as investors remained on the sidelines for further developments from the company.
Earlier, the company reported net loss in the third quarter and the first nine months of the year. Albeit a lower net loss in the third quarter, its first nine months registered a higher loss of $149.2 million as compared with the $132.2 million registered year-on-year.
Investors are also waiting on the sidelines for any updates on its drug Rytelo, which aims to treat specific types of myelodysplastic syndromes. The European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) already recommended the drug for approval to the European Commission, which will review the recommendation. A final decision on market authorization is expected in the coming months.
6. Aurora Innovation Inc. (NASDAQ:AUR)
Shares of Aurora Innovation declined by 4.69 percent on Monday to end at $6.5 apiece 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.
In other news, Uber CEO Dara Khosrowshahi announced that he was stepping down as a member of the board for Aurora Innovation. However, he noted that his resignation was to focus on his ongoing responsibilities as CEO of the transport network company and not due to any disagreement with Aurora.
5. Rivian Automotive Inc. (NASDAQ:RIVN)
Rivian Automotive’s shares dropped by 4.7 percent on Monday to finish at $15.72 each as investors pocketed early gains after delivering its biggest single-day percentage on Friday since going public.
The stock surged by an impressive 24 percent in the previous trading day buoyed by stellar fourth-quarter delivery numbers.
According to the company, it produced 12,727 vehicles at its plant in Normal, Illinois in the fourth quarter of the year and a total of 49,476 units for the full year. Deliveries were even better at 14,183 for the fourth quarter alone and 51,579 units for the full year 2024.
Meanwhile, Wall Street analysts earlier expected the company to deliver closer to 13,400 electric vehicles for the period and 51,000 for the entire year.
4. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Shares of Polestar Automotive declined by 6.56 percent on Monday to end at $1.14 each following news that the company recalled two vehicles produced for model year 2025 due to fluctuations in its 12-volt system that could affect the high-to-low-voltage converter module and lead to a loss of drive power.
According to a report, the company started investigating the recall condition last month after the supplier notified the company of the fluctuations.
According to Polestar, customers who are uncertain if their battery-electric vehicles have been hit by the recall are advised to run the 17-character VIN on Polestar’s consumer website.
All of the recalled vehicles were produced in China at the Luqiao CMA Super Factory in Zhejiang.
3. CNX Resources Corp. (NYSE:CNX)
Shares in CNX Resources dropped for a second day on Monday, losing 7.49 percent to finish at $30.64 each as investors continued to sell off shares following its lukewarm reception of the newly released hydrogen tax credits.
While it acknowledges the environmental and economic benefits of Coal Mine Methane, CNX said last week that the final rules of Section 45V, the Clean Hydrogen Production Tax Credit, seem too restrictive and do not offer sufficient economic incentives to expand its CMM capture operations for hydrogen use.
Despite reservations, the company said it was planning to leverage the validation and explore alternative incentive pathways for CMM, such as voluntary markets, other tax incentives, and compliance program commercial opportunities.
2. Bitdeer Technologies Group (NASDAQ:BTDR)
Shares of Bitdeer declined by 10.8 percent on Monday to end at $23.28 per share as investors pocketed early gains after its valuation rose to an all-time high of $26.99.
According to analysts, its intra-day high was bolstered by reports that it officially filed for a $1 billion fundraising program, but some investors are raising brows over a potential dilution in its valuations.
Bitdeer—a $4 billion heavyweight in Bitcoin mining and data center services—has signaled an aggressive growth plan over the next few years.
Analysts also posted a bullish outlook on Bitdeer, with Roth MKM maintaining a buy rating for the company and increasing its price target to $29 citing progress in high-performance computing and Artificial Intelligence, and rapid traction of its SEALMINER platform.
Benchmark also raised its target price to $29 from $16 while maintaining a “buy” rating, highlighting Bitdeer’s development and operation of data centers, increased hash rate, and efforts in designing and manufacturing next-generation ASIC chips and bitcoin mining rigs.
1. Miniso Group Holding Ltd. (NYSE:MNSO)
Shares of Miniso Group on Monday dived by 12.66 percent to end the day at $24.07 each following the company’s announcement of a $550-million equity-linked offer due 2032. According to the company, proceeds from the offer will be used to support operational enhancements, marketing campaigns, global development, and share buybacks.
The shares will bear a 0.5 percent annual interest rate, payable semiannually, with an initial exercise price of HK$64.395 per share, or a 32.5 percent premium over the expected offer price.
Around 50 percent of the net proceeds will be allocated for overseas expansion, supply chain optimization, brand building, and working capital, while the other 50 percent will be used for share repurchases. The securities will be exchangeable for cash from January 14, 2031.
While we acknowledge the potential of MNSO 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 MNSO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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