Shares on Wall Street traded lower on Thursday, as investors moved to unload positions to mitigate risks from uncertainties brought about by key economic factors such as President Donald Trump’s continued tariff threats and policy shifts.
The Dow Jones dived by 1.01 percent, the S&P 500 declined 0.43 percent, while the tech-heavy Nasdaq lost 0.47 percent.
Ten companies also mirrored a broader market downturn, finishing the trading session in the red territory amid a flurry of catalysts dampening investor sentiment.
To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A technical stock market chart. Photo by Energepic from Pexels
10. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Royal Caribbean Cruises Ltd. (NYSE:RCL) saw its share prices drop by 7.62 percent on Thursday to finish at $243.89 apiece as investors sold off positions following US President Donald Trump’s announcement that he would begin imposing taxes on cruise ship companies.
RCL’s share prices traded in line with its counterparts, namely Carnival Corp. (NYSE:CCL) and Norwegian Cruise Line Holdings (NYSE:NCLH), which both fell by 5.86 percent and 4.89 percent, respectively.
In an interview with Fox News, US Commerce Secretary Howard Lutnick announced that the three cruise ship operators, all operating under the flags of other countries, must start facing tax sanctions.
“This is going to end under Donald Trump, and those taxes are going to be paid,” he said.
Lutnick said revenues from the tariffs would support lower tax rates for Americans.
9. Teladoc Health, Inc. (NYSE:TDOC)
Shares of Teladoc Health, Inc. (NYSE:TDOC) fell 7.84 percent on Thursday to finish at $12.69 apiece as investor sentiment was dampened by news that it is being investigated by a shareholder law firm for potential securities law violations.
According to Block & Leviton LLP, it is underway with the investigation of TDOC following a report from Blue Orca Capital alleging the company has misled investors about its BetterHelp platform and financial reporting.
The report claimed that the platform used AI-generated responses in place of licensed therapists, without any disclosures to investors and patients.
The report also claimed that TDOC inflated profitability by shifting research and development expenses.
In other news, TDOC recently announced the acquisition of Catapult Health, a national preventive healthcare practice offering preventive checkups through VirtualCheckups, for $65 million.
TDOC said the acquisition was 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.
8. AppLovin Corporation (NASDAQ:APP)
AppLovin Corporation (NASDAQ:APP) dropped its share prices for a third straight day, closing Thursday’s trading by 8.94 percent at $450.01 each, with analysts pointing to a blog post by Edwin Dorsey, criticizing what he touted as “low-quality” ads leading users astray.
In the blog post said to have more than 80,000 subscribers and voicing corporate misconduct, Dorsey said that APP’s rapid growth has been bolstered by “low-quality revenue growth” from advertisements that don’t give clickers what they expect.
The opinion piece came at a time when APP is enjoying surging valuations, even being one of the biggest gainers on a week-on-week basis last week, buoyed by impressive earnings performance for 2024.
In a statement, APP said net income last quarter expanded by 248 percent to $599 million from the $172 million registered in the same period a year earlier, as revenues grew 44 percent to $1.37 billion from $953 million year-on-year.
In full year 2024, net income soared 343 percent to $1.58 billion from $356 million year-on-year.
APP also expects revenues for the first quarter of the year to remain within the $1-billion level, and settle anywhere between $1.355 billion to $1.385 billion.
7. iQIYI, Inc. (NASDAQ:IQ)
iQIYI, Inc. (NASDAQ:IQ) saw its share prices drop by 9.92 percent on Thursday to end at $2.18 apiece as investors unloaded positions following disappointing earnings performance last year while digesting announcements of fundraising activity.
In its latest earnings, 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.
A few days after its earnings release, IQ announced that it was looking to raise $300 million through the issuance of convertible bond offerings over the next five years.
Under the terms, the unsecured notes will offer a coupon rate ranging from 4.25 percent to 4.75 percent annually, with payments to be made quarterly.
IQ’s bond issuance is being managed by Bank of America, Morgan Stanley, and JPMorgan as joint bookrunners for the deal.
IQ said proceeds from the issuance would be used to repay or repurchase existing debt securities, while the balance would be for general corporate purposes.
6. ACV Auctions Inc. (NASDAQ:ACVA)
ACV Auctions Inc. (NASDAQ:ACVA) fell for a third day on Thursday, losing 9.98 percent to close at $18.59 apiece as investor sentiment was dampened by disappointing earnings results.
In a statement, ACVA said net loss widened by 12.5 percent to close at $26.1 million from $23.2 million in the same period last year, despite revenues growing by 35 percent to $159 million from $118 million year-on-year.
Net loss for the full year also grew by 5.9 percent to $79.7 million from $75.26 million, while revenues increased by 32 percent to $637 million from $481 million.
For the first quarter of the year, ACVA expects revenues to settle between $180 million and $185 million, or an increase of 24 percent to 27 percent year-on-year. It also expects to remain at a net loss ranging from $19 million to $21 million for the quarter.
For the full year, revenues were pegged at $765 million to $785 million, or a 20 to 23 percent growth, and net loss to settle between $52 million to $62 million.
5. Aegon Ltd. (NYSE:AEG)
Shares of Aegon Ltd. (NYSE:AEG) declined by 10.07 percent on Thursday to finish at $6.07 apiece as investors sold off positions, following the lack of clear outlook guidance for the year, shunning news of strong earnings performance in the second half of 2024.
In a statement, AEG said it booked a net profit of €741 million during the period, after zero profits in the same period in 2023. Meanwhile, operating profit rose 13.9 percent to €776 million from €681 million year-on-year.
“In 2024, we continued to make good progress without transformation and are on track to meet the 2025 targets we laid out at our 2023 Capital Markets Day (CMD). We will provide an update on our strategy and new group targets at our next CMD on December 10, 2025, in London,” said AEG CEO Lard Friese.
4. Dun & Bradstreet Holdings, Inc. (NYSE:DNB)
Dun & Bradstreet Holdings, Inc. (NYSE:DNB) dived for a fourth consecutive day on Thursday, ending the trading session lower by 10.35 percent at $9.44 apiece as investors sold off positions after missing earnings estimates and reporting mixed earnings results.
In a statement, DNB said net income in the fourth quarter of 2024 soared by 358 percent to $7.8 million from $1.7 million in the same period in 2023, while revenues were flat at $631.9 million versus $630.4 million.
For the full year, DNB narrowed its net losses by 39 percent to $28.6 million from $47 million in 2023, while revenues inched up by 2.89 percent to $2.38 billion from $2.31 billion.
Earnings per share were missed by 2 cents, having settled at $0.30 versus the $0.32 consensus.
3. Grab Holdings Limited (NASDAQ:GRAB)
Ride-hailing giant Grab Holdings Limited (NASDAQ:GRAB) saw its share prices drop by 10.39 percent on Thursday to finish at $4.785 apiece as weak earnings performance in 2024 and outlook guidance weighed down investor sentiment.
In its latest earnings release, GRAB said net income was flat at $11 million in the fourth quarter of the year versus the same period last year as higher foreign exchange losses and lower contribution from net changes in fair value of financial assets totaling $39 million offset the improvement in operating profit.
Revenues grew by 17 percent to $764 million from $653 million year-on-year, driven by growth across all segments.
For full year 2024, net loss narrowed by 67 percent to $158 million from $485 million as revenues rose 19 percent to $2.797 billion from $2.359 billion.
For 2025, GRAB said it expects full-year revenues to settle between $3.33 billion to $3.4 billion, or a growth ranging from 19 percent to 22 percent year-on-year.
2. Tempus AI, Inc. (NASDAQ:TEM)
Shares of Tempus AI, Inc. (NASDAQ:TEM) tumbled by 10.49 percent on Thursday to finish at $76.72 apiece as investor sentiment was weighed down by a series of unloading in shares of the company from its executives.
In separate regulatory filings posted on TEM’s website, several executives sold shares in the company, on Tuesday, February 18. The executives included its chairman and CEO Eric Lefkofsky ($11.97 million); chief operating officer Ryan Fukushima ($234,814); chief finance officer James William Rogers ($2.6 million); chief accounting officer Ryan Bartolucci ($201,532); EVP, chief admin, and legal officer Erik Phelps ($5.07 million); and EVP and general counsel Andrew Polovin ($5.3 million).
The transactions were reported as part of the company’s equity incentive plans, where shares were sold to cover statutory tax withholding obligations upon the vesting of restricted stock units.
1. Carvana Co. (NYSE:CVNA)
Carvana Co. (NYSE:CVNA) dropped its share prices for a third straight day, ending Thursday’s trading lower by 12.10 percent to close at $247.72 apiece as investors unloaded positions following mixed earnings results and a cautious outlook for the company amid tariff threats.
CVNA, an online marketplace for used cars, said net income attributable to the company settled at $79 million in the fourth quarter of 2024, a reversal from the $114 million net loss registered in the same period in 2023.
However, net income attributable to the company fell by 53 percent to $210 million last year from $450 million in 2023.
In a recent interview with Bloomberg, CVNA CEO Ernie Garcia posted a conservative outlook for the company, saying that they are taking into consideration all headwinds, including tariffs and inflation rate, as they remain focused on long-term growth.
Earlier this week, President Donald Trump threatened to slap imported cars with around 25 percent tariffs, a policy that could make cars more expensive and impact sales.
While we acknowledge the potential of CVNA 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 CVNA 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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