Wall Street’s main indices suffered a bloodbath on Tuesday, as investors shifted to other higher-yielding assets following better Treasury yields.
The Nasdaq Composite led the drop, losing 1.89 percent, followed by the S&P 500 declining 1.11 percent. Meanwhile, the Dow Jones dipped by 0.42 percent.
The overall market downturn dragged down the prices of these 10 companies. In this article, let’s explore the reasons behind their decline.
To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A man in long sleeves looking at stock market data. Photo by Tima Miroshnichenko on Pexels
10. MARA Holdings Inc. (NASDAQ:MARA)
Shares in MARA Holdings dropped by 7.20 percent or $1.48 on Tuesday to close at $19.07 apiece as investors resorted to profit-taking following Monday’s gains and news that it loaned 7,377 of its Bitcoin holdings.
Investors took the news as a potential risk to the company’s portfolio, especially as it represents as much as 16.4 percent of its reserves. According to the company, the move to loan to third parties was to help generate additional income.
“There has been significant interest in MARA’s bitcoin lending program,” said MARA Holdings vice president for investor relations Robert Samuels on X. “It focuses on short-term arrangements with well-established third parties. It generates a modest single-digit yield. It has been active throughout 2024. The long-term objective is to generate sufficient yield to offset operating expenses.”
9. TAL Education Group (NYSE:TAL)
Shares of TAL Education dropped for a second day on Tuesday, losing 7.28 percent or $0.71 points to close at $9.04 apiece over the lack of catalysts to spark buying appetite.
Despite the decline, prospects for the company remained strong with Zack Research expecting the company to post quarterly earnings of $0.04 per share in its upcoming report, representing a more than 200 percent increase year-on-year. Meanwhile, revenues are expected to settle at $549.71 million, up 47.2 percent from the same period last year.
TAL Education said it continuously refines and expands its learning programs to deliver high-quality educational experiences. The company’s Peiyou small-class offerings, which have been a significant driver of revenue, are being enhanced through standardized lecturing approaches and interactive, student-centric learning experiences.
8. Unity Software Inc. (NYSE:U)
Shares of Unity Software closed lower on Tuesday, losing 7.46 percent or $1.86 at $23.08 apiece as investors took profits following Monday’s gains.
The company also saw its one- and five-year performances decline by 40.79 percent and 66.23 percent, respectively, amid ongoing challenges on its earnings performance.
In its latest quarterly result, Unity reported a loss of $0.31 per share, which was better than analysts’ expectations of $0.39. Despite settling in the red, the figures showed an improvement from the previous quarter, when it beat estimates with a smaller-than-expected loss of $0.32 versus $0.44.
Unity is a game engine company that creates tools that help create and run real-time 3D content, such as video games, interactive experiences, and industrial applications, across different platforms.
7. Palantir Technologies Inc. (NASDAQ:PLTR)
Shares in Palantir Technologies dropped by 7.81 percent or $5.93 on Tuesday to close at $69.99 apiece after Cathie Wood’s top ETFs sold nearly 200,000 shares of PLTR stock yesterday.
Wood’s ETFs sold a combined total of nearly 197,000 shares of Palantir stock, worth about $15 million.
On the same day, Palantir earned an “underweight” rating from Morgan Stanley analyst Sanjit Singh, citing valuation. He said that the firm’s growth “is more than priced in.”
Additionally, Singh said that the shares may not climb without clear indications that analysts’ estimates for the technology firm will rise. He projected a $60 price target on the shares which is well below its current valuation.
6. Coinbase Global Inc. (NASDAQ:COIN)
Shares in Coinbase Global Inc. declined by 8.14 percent or $23.43 on Tuesday to close at $264.33 apiece after Cathie Wood’s asset management firm Ark Invest sold 3,769 shares for a total of $1.08 million.
According to reports, the sell-off was due to the lack of bounce back in the company’s stock performance.
Investors were also waiting on the sidelines for updates on an ongoing legal case between the company and the Securities and Exchange Commission ahead of the inauguration of the Trump administration.
The US SEC filed a lawsuit against Coinbase in 2023 alleging that the crypto exchange has been facilitating unlawful trading of at least 13 digital assets, which ought to be registered as securities.
5. Nuscale Power Corp. (NYSE:SMR)
Shares of Nuscale dropped by 8.24 percent or $1.95 on Tuesday to finish at $21.72 apiece as investors took profits following Monday’s gains.
In other news, Nuscale alongside its peers is set to benefit from the Department of Treasury and Internal Revenue Service’s revised rules for hydrogen production tax credits that aim to address several key issues to help grow the industry and move projects forward.
The policy revision is particularly timely as it aligns with the broader push towards sustainable energy solutions, where nuclear power, especially through SMRs, plays a crucial role due to its potential for lower emissions and scalable deployment.
The final rules clarify how producers of hydrogen, including those using electricity from various sources, natural gas with carbon capture, renewable natural gas (RNG), and coal mine methane can determine eligibility for the credit.
4. Intuitive Machines Inc. (NASDAQ:LUNR)
Intuitive Machines saw its share price drop by 8.69 percent or $1.89 to end Tuesday at $19.87 apiece.
Investors discounted news that the company, alongside Nokia, successfully integrated Nokia’s Lunar Surface Communication System into the IM-2 mission lander, named Athena, paving the way for the first cellular network on the moon.
After months of testing and validation with Nokia Bell Labs, Intuitive Machines engineers installed the LSCS network in a box to one of Athena’s upper carbon-composite panels. Multiple precautions were taken during the installation to help ensure that the network will safely make the 239,000-mile journey to the Moon, survive the stresses of take-off and landing, and operate optimally on the lunar surface.
3. SoundHound AI Inc. (NASDAQ:SOUN)
Shares of SoundHound AI declined by 9.63 percent or $1.91 to finish Tuesday’s trading at $17.98 apiece even as the company unveiled its latest technology at the ongoing Consumer Electronics Show conference in Las Vegas.
SoundHound’s new technology allows people to conversationally order take-out food from participating restaurants directly through their car and pay for it.
According to analysts, traders also seem to be triggered by the stock moving back below $20, which can be considered a psychological lower-end price level. Since the start of the year, SoundHound’s shares have been moving on a downward trajectory.
SoundHound AI 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.
2. Mobileye Global Inc. (NASDAQ:MBLY)
Mobileye Global, an Israel-based autonomous driving company, saw its share prices on Tuesday drop by 10.51 percent or $2.3 to finish at $19.55 apiece, with investor sentiment weighed down by a global market downturn.
Several analysts posted a more conservative outlook on the company. Evercore ISI recently cut its price target on Mobileye from $35.00 to $30.00, while giving it an “outperform” rating.
Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $15.00 price objective, while Barclays lowered its target for the company from $19.00 to $18.00.
Two research analysts gave the stock a sell rating, while ten provided a hold rating. Eleven have issued a buy rating and one has given a strong buy rating to the stock.
1. Bitdeer Technologies Group (NASDAQ:BTDR)
Shares of Bitdeer Technologies dived by 15.36 percent or $3.58 points to close at $19.7 apiece on Tuesday, with investor sentiment believed to be dragged by an overall market downturn.
Analysts said investors remained cautious over the company’s recent $1 billion fundraising program, particularly if it would result in 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.
Despite the decline, analysts remained bullish on the company, 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.
While we acknowledge the potential of BTDR 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 BTDR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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