Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.
The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.
Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.
To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
Note that the companies we covered in-depth last Friday have been excluded from the list.
Stock market charts. Photo by Kaboompics.com on Pexels
10. TAL Education Group (NYSE:TAL)
TAL Education declined by 7.54 percent on Monday to finish at $13.36 apiece as uncertainties surrounding the trade industry within the US and China continued to hound Chinese firms, including TAL.
Along with several Chinese counterparts, the drop came after President Donald Trump issued a memorandum on Friday encouraging foreign investments in the US while taking a swipe at China by directing the Committee on Foreign Investment in the United States (CFIUS) to impose stricter regulations on Chinese investments in key strategic sectors.
According to the memo, China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security.”
Under the directive, the US will establish new rules to curb “the exploitation of its capital, technology, and knowledge by foreign adversaries such as China to ensure that only those investments that serve American interests are allowed.”
The memorandum came at a time when TAL Education was actively expanding its footprint in the US.
9. Rivian Automotive Inc. (NASDAQ:RIVN)
Rivian Automotive fell for a fourth straight day on Monday, losing 7.79 percent to close at $11.96 apiece as investors sold off positions following Bank of America’s rating downgrade.
In a report, the bank said it downgraded RIVN to “underperform” from “neutral” previously and lowered its price target to $10 from $13.
According to the bank, risks are piling up for the company despite it being one of the most viable startup electric vehicle manufacturers.
During the fourth quarter of 2024, RIVN narrowed its net loss by 51 percent to $744 million from $1.521 billion in the same period a year earlier while revenues grew by 31.86 percent to $1.7 billion from $1.3 billion.
For the full year, net loss shrunk by 12.6 percent to $4.747 billion from $5.432 billion in 2023, while revenues increased by 12 percent to $4.97 billion from $4.4 billion year-on-year.
For this year, RIVN expects adjusted EBITDA loss to settle between $1.7 billion to $1.9 billion.
8. Archer Aviation Inc. (NYSE:ACHR)
Archer Aviation dropped for a second day on Monday, slashing 8.54 percent to finish at $8.35 each as investors repositioned their portfolios ahead of its earnings release on Thursday, February 27, where investors will be looking out for prospects about its business for the full year and whether or not it would beat analysts’ expectations.
For the fourth quarter of 2024, analysts expect the company to register a $0.26 loss per share.
Earlier, ACHR founder Adam Goldstein said that the company was “ready to launch” its flying taxis in Abu Dhabi this year.
ACHR was backed by automaker Stellantis and Abu Dhabi sovereign wealth fund Mubadala. It was among the first few companies to get the first commercially viable electric vertical take-off and landing (eVTOL) vehicles off the ground.
7. Core Scientific Inc. (NASDAQ:CORZ)
Core Scientific declined for a sixth consecutive day on Monday, losing another 8.7 percent to finish at $9.86 apiece as investors repositioned their portfolios ahead of its earnings release on Wednesday, February 26, further fueled by the company already in oversold territory.
Based on analyst expectations, CORZ is expected to register an average of $97.06 million in revenues for the fourth quarter of the year, with earnings per share (EPS) pegged at $0.05.
For the first quarter of the year, revenues are expected to settle at an average of $101.5 million, with EPS of $0.07.
CORZ is a Bitcoin miner and data infrastructure company that operates one of the largest high-performance computing (HPC) data center operations in North America.
6. Lucid Group Inc. (NASDAQ:LCID)
Lucid Group saw its share prices decrease for a fourth straight day on Monday, dropping 9.15 percent to finish at $2.78 apiece as investors adjusted their holdings in the company ahead of its earnings release while also digesting the downgraded rating from an investment research firm.
On Monday, Redburn-Atlantic adjusted its rating for LCID to “sell” from “neutral,” while giving a steep decline in its price target to $1.13 from $3.5 previously.
According to Redburn, LCID is expected to face challenges from its competitors particularly in matching the efficiency of its vehicles before 2030.
Earlier this month, LCID announced the promotion of Emad Dlala to Senior Vice President of Powertrain, whose role in the company has been instrumental in the development and advancement of Lucid’s powertrain technology.
Dlala has been with Lucid in various technical roles since 2015 where he led efforts to develop breakthrough technologies that achieved unmatched range and performance in the Lucid Air and leading technologies in the Lucid Gravity.
5. Futu Holdings Ltd. (NASDAQ:FUTU)
Futu Holdings fell by 9.16 percent on Monday to close at $110.28 apiece, in line with its Chinese peers, following a new memorandum from the White House encouraging foreign investments while singling out China over threats it poses to US national security interests.
President Donald Trump issued the memorandum on Friday which directed the Committee on Foreign Investment in the United States (CFIUS) to impose stricter regulations on Chinese investments in key strategic sectors.
According to the memo, China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security.”
Under the directive, the US will establish new rules to curb “the exploitation of its capital, technology, and knowledge by foreign adversaries such as China to ensure that only those investments that serve American interests are allowed.”
Futu, a financial technology company offering digital financial services, operates in seven key regions namely the US, Hong Kong, Singapore, Australia, Japan, Canada, and Malaysia.
4. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Shares of Credo Technology declined for a fourth consecutive day on Monday, losing another 9.82 percent to end at $60.22 apiece as investors sold off positions to take profits while also digesting news of insider selling.
Last week, CRDO Chief Operating Officer Lam Yat Tung disposed of 169,000 shares in the company at a price ranging from $72.8704 to $76.4784 apiece, totaling $12.7 million.
Following the sell-off, Lam’s ownership in the company ended at 1.1 million, indirectly owned through Zhan BVI Co Ltd, while its direct stake is currently at $2.8 million.
In recent news, CRDO received a bullish outlook from Mizuho Financial, earning a higher price target of $85 from $70 previously, while keeping its “outperform” rating.
According to Mizuho, it sees continued strength in artificial intelligence, custom silicon, and connectivity, the benefits of which will create a ripple effect in the company. He added that AI will benefit memory and storage.
3. Bilibili Inc. (NASDAQ:BILI)
Bilibili saw its share prices decline by 10.04 percent on Monday to finish at $20.53 apiece as investor sentiment was dampened by concerns on whether or not the company could find a new online game that could mirror or exceed the success of “Three Kingdoms: Strategy Time.”
According to an analyst from Nomura, the game has the potential to remain popular over the long term but it could lead to a slow growth in the second quarter.
Last week, BILI said it swung to a net income attributable to shareholders of RMB89.96 million in the last quarter, from a RMB1.296 billion net loss in the same period a year earlier, as revenues grew 21.8 percent to RMB7.7 billion from RMB6.3 billion in the same comparable period.
For full year 2024, net loss attributable to shareholders shrunk by 72 percent to RMB1.346 billion from RMB4.822 billion in 2023, while revenues jumped by 19 percent to RMB26.831 billion from RMB22.527 billion year-on-year.
2. Palantir Technologies Inc. (NASDAQ:PLTR)
Palantir Technologies extended its losing streak for the fourth day on Monday to finish at $90.68 apiece as investor caution continued to linger following a budget cut in the Department of Defense that could impact the company’s business.
Last Wednesday, Defense Secretary Pete Hegseth ordered Pentagon officials to slash the defense budget by 8 percent annually over the next five years, following an order from President Donald Trump.
The move took a hit on PLTR, which currently sources 40 percent of its revenues from US government agencies, including the US Army.
Apart from PLTR, the news also took a toll on other government contractors, namely Northrop Grumman, Booz Allen Hamilton, and L3 Harris.
Additionally, PLTR CEO Alex Karp said last week that the company has adopted a new trading plan to sell up to 9.98 million shares until September.
1. Summit Therapeutics Inc. (NASDAQ:SMMT)
Summit Therapeutics nosedived by 14.83 percent on Monday to close at $18.84 apiece as investors sold off following the release of a mixed earnings performance last year.
In a statement, SMMT said its net loss for the last quarter of the year widened by 67 percent to $61.2 million from $36.6 million in the same period a year earlier, as operating loss jumped by 81 percent to $65.6 million from $36.2 million.
However, the full year remained strong, with net losses narrowing by 64 percent to $221.3 million from $614.9 million, as operating loss shrunk by 62.9 percent to $226 million from $610.6 million year-on-year.
In the same news, SMMT announced it would partner with pharmaceutical giant Pfizer Inc. (PFE) for the clinical trial of ivonescimab, a novel, investigational PD-1 / VEGF bispecific antibody, in combination with several of Pfizer’s antibody-drug conjugates (ADCs) across multiple solid tumor settings.
SMMT said the goal was to evaluate ivonescimab, in combination with several unique Pfizer ADCs across multiple solid tumor settings to accelerate the advancement of potentially landscape-changing combinations, which seek to improve the standards of care for patients facing serious unmet needs.
While we acknowledge the potential of SMMT 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 more promising than SMMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
