Wall Street’s main indices began the shortened trading week on a lackluster note, albeit finishing in the green, as investors continued to digest corporate earnings results.
The S&P 500 led the charge, recording a modest 0.24 percent gain. However, the Dow Jones and the tech-heavy Nasdaq posted gains of only 0.02 percent and 0.07 percent, respectively.
Ten companies performed poorly on Tuesday amid a series of negative catalysts that disappointed investors. In this article, we identified the 10 worst performers and detailed the reasons behind their drop.
To come up with the list, 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. Baidu, Inc. (NASDAQ:BIDU)
Baidu, Inc. (NASDAQ:BIDU) retreated on Tuesday, losing 7.51 percent to close at $90.16 apiece as investors unloaded portfolios after the company’s third straight quarter of revenue drop.
In a statement on Tuesday, Baidu said revenues for the fourth quarter of 2024 dipped by 2.3 percent to RMB34.124 billion ($4.69 billion) from RMB34.951 billion ($4.8 billion) previously, while revenues for full-year 2024 dipped by 1 percent to RMB133 million from RMB134 million previously, amid cut-throat competition in the industry.
Net income for the quarter, however, doubled to RMB5.192 billion ($713 million) from RMB2.599 billion ($357 million) previously, while net income for the full year increased 17 percent to RMB23.76 billion ($3.26 billion) from RMB20.315 billion ($2.79 billion) year-on-year.
9. Tempus AI, Inc. (NASDAQ:TEM)
Shares of Tempus AI, Inc. (NASDAQ:TEM) declined by 8.37 percent on Tuesday to finish at $81.95 apiece as investors resorted to profit-taking following a four-day rally last week, buoyed by its partnership with a non-profit organization for the development of a treatment for follicular lymphoma.
In a statement, TEM said it partnered with the Institute for Follicular Lymphoma Innovation (IFLI) to develop targeted therapies for the disease by developing a real-world multimodal, deidentified data library in its data analytics platform, through which researchers may derive AI-driven insights to accelerate the development of follicular lymphoma treatments in an effort to improve patient outcomes.
The two parties will focus on prospectively generating multimodal data, particularly for POD24 patients who experience disease progression within 24 months of treatment.
Data from the National Cancer Institute as of 2024 showed that individuals with follicular lymphoma currently have a survival rate of 89.9 percent. It is most frequently diagnosed among people aged 65 to 74.
8. Fluor Corporation (NYSE:FLR)
Fluor Corporation (NYSE:FLR) fell for the fifth consecutive day on Tuesday, losing another 8.41 percent to finish at $39.75 apiece as investors sold off positions, shunning the company’s strong earnings performance last year, and instead focusing on its inability to meet analyst expectations.
In the past quarter, FLR said it achieved $1.86 billion in net income attributable to the company, reversing a net loss of $21 million in the same period last year, as revenues increased 11.5 percent to $4.26 billion from $3.82 billion. Revenue figures, however, fell short of the $4.48 billion forecast.
Meanwhile, FLR saw net income attributable to the company expand by 1,443 percent to $2.145 billion from $139 million in 2023, as revenues inched up by 5 percent to $16.3 billion from $15.47 billion year-on-year.
Earnings per share stood at 48 cents, falling short of the 78-cent consensus.
7. Teladoc Health, Inc. (NYSE:TDOC)
Teladoc Health, Inc. (NYSE:TDOC) saw its share prices fall by 8.51 percent on Tuesday to close at $13.11 apiece as investors repositioned their portfolios ahead of the release of the company’s 2024 earnings performance next Wednesday, February 26.
Just recently, TDOC announced the acquisition of Catapult Health for $65 million in line with its efforts to improve early detection of health conditions, expand into at-home diagnostic testing, and deliver better health outcomes in care management that would complement its industry-leading suite of integrated solutions.
Subject to customary closing conditions, the transaction is expected to be completed in the first quarter of 2025.
Earlier this month, analysts from Citron Research gave a bullish outlook for the company following the acquisition as well as its effective use of technology to enhance profitability and expand margins.
6. Kingsoft Cloud Holdings Limited (NASDAQ:KC)
Shares of Kingsoft Cloud Holdings Limited (NASDAQ:KC) fell by 8.84 percent on Tuesday to end at $18.97 apiece as investors turned into sellers to book profits following a surge in its prices on Friday.
Last week’s investor optimism was fueled by news highlighting a breakthrough from China’s AI platform, DeepSeek, and that its continued advancements were expected to accelerate the creation of AI applications in China and benefit Chinese firms, including KC.
Lyon also significantly raised its price target for KC by 272 percent to $20.5 from $5.5 previously.
KC has been earning a boost from DeepSeek over the past few weeks, particularly after Xiaomi, led by its chairman Lei Jun, poached one of DeepSeek’s top developers, Luo Fuli, to join Xiaomi’s AI development team.
The news boosted investor sentiment on hopes that any AI development in Xiaomi will create a domino effect on Kingsoft’s business in cloud computing.
5. Bitdeer Technologies Group (NASDAQ:BTDR)
Bitdeer Technologies Group (NASDAQ:BTDR) fell for a second straight day on Tuesday as investor sentiment was dampened by news that Bitcoin mining performance dropped last month due to temporary curtailments at its site in Bhutan.
In a statement last week, BTDR said it was only able to mine 126 Bitcoins for January, down month-on-month, due to higher seasonal electricity prices that curtailed its Bhutan site.
In addition, it expects production for its SEALMINER A2 will be delayed for one month due to a 6.4-magnitude earthquake that struck Taiwan on January 21.
However, BTDR said mass production of its SEALMINER A1 remains on schedule, while SEALMINER A3 is expected to be the most advanced and energy-efficient Bitcoin mining chip on the market.
BTDR is a world-leading technology company for blockchain and high-performance computing.
4. iQIYI, Inc. (NASDAQ:IQ)
iQIYI, Inc. (NASDAQ:IQ) dropped its share prices by 9.25 percent on Tuesday as investor sentiment was dampened by disappointing earnings performance last year.
In its earnings release, IQ swung to a net loss of RMB189 million from a RMB466 million attributable net income in the fourth quarter of 2024, while net income for the full year dropped by 60 percent to RMB764 million from RMB1.9 billion in 2023.
Revenues for the full year also dropped by 8.3 percent to RMB29.22 billion from RMB31.87 billion, while revenues for the quarter declined by 14 percent to RMB6.6 billion from RMB7.7 billion.
“We continued to execute with a focus on discipline and efficiency, which led to sequential growth in operating profit for the fourth quarter. The strong operational momentum is extending into the opening of 2025, marking an encouraging start for the year,” said IQ Chief Finance Officer Jun Wang.
3. IonQ, Inc. (NYSE:IONQ)
IonQ, Inc. (NYSE:IONQ) fell for a second day on Tuesday, losing 9.4 percent to finish at $33.94 apiece as investors feared news of growing competition in the quantum computing industry, particularly with the advancements of Chinese players such as Origin Quantum Computing.
According to reports on Tuesday, Origin Quantum Computing created a prototype machine that features 72 working qubits, higher than the 64-working qubits machine that IONQ was gearing up to launch this year.
The report added that the Chinese company’s prototype machine received over 20 million remote visits and was accessed by researchers from 139 countries.
IONQ is also set to make a huge leap in developing and launching a 256-qubit system this year but is now hanging in the balance of high expectations.
2. Sweetgreen, Inc. (NYSE:SG)
Sweetgreen, Inc. (NYSE:SG) dropped its share prices by 9.49 percent on Tuesday, ending the trading session at $24.61 apiece as investors repositioned their portfolios ahead of the company’s release of 2024 earnings performance on February 26.
In particular, investors adjusted their portfolios amid news that its subscription experiment, Sweetpass which it attempted to offer two years ago, is coming to an end. The abandonment of the program particularly signaled challenges to the company in finding a scalable business model to boost growth.
According to reports, SG is set to discontinue subscription programs and launch a new loyalty program called SG Rewards, a free program that will allow guests to earn points for every dollar spent.
News reports quoted SG CEO Jonathan Neman as saying that the company is now focused on having more direct relationships with customers.
“Loyalty is going to be a big piece of this puzzle,” he said.
1. Rigetti Computing, Inc. (NASDAQ:RGTI)
Rigetti Computing, Inc. (NASDAQ:RGTI) fell by 10.92 percent on Tuesday to close at $10.52 apiece as investors sold off positions following news of growing competition in the quantum computing industry, particularly with the advancements of Chinese players, including Origin Quantum Computing.
RGTI, along with its quantum computing peers, including IONQ, lost valuations after Chinese news reports that startup Origin Quantum Computing created a prototype machine that features 72 working qubits.
Meanwhile, RGTI is expected to release a 36-qubit system based on four 9-qubit chips by mid-2025.
By the end of the year, RGTI expects to release a system with over 100 qubits with a targeted 2x reduction in error rates from the current level.
While we acknowledge the potential of RGTI 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 timeframe. If you are looking for an AI stock that is as promising as RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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