10 Stocks Drop by Double Digits Mostly Due to Disappointing Earnings

1. Vertex Inc. (NASDAQ:VERX)

Vertex nosedived by 18.98 percent on Thursday to finish at $34.54 apiece as investors sold off positions following a disappointing earnings performance last year.

In a statement, VERX swung to a net loss of $68 million in the fourth quarter of 2024 versus $15.3 million in the same period a year earlier, despite revenues growing by 15 percent to $178 million from $154.9 million year-on-year.

The company also widened its net loss by 302 percent in full-year 2024 at $52.7 million versus $13.1 million in 2023, despite full-year revenues growing by 16 percent to $666.8 million from $572 million year-on-year.

For the first quarter of the year, VERX expects revenues to settle between $175 million and $178 million, and between $760 million and $768 million in the full year alone.

While we acknowledge the potential of VERX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as VERX but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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