Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.
On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.
In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.
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.
Stock market data. Photo by Alesia Kozik
10. Astera Labs Inc. (NASDAQ:ALAB)
Astera Labs (ALAB) saw its share prices drop by 6.67 percent on Tuesday to close at $124.41 apiece as investor sentiment was dampened after earning a rating downgrade from investment bank Morgan Stanley.
According to Morgan Stanley, it downgraded its outlook for Astera Labs to “equalweight” from “overweight” previously, while also setting a price target of $142 for its share price.
The company noted that Astera Labs’ current valuation appears to already reflect market optimism surrounding its new PCIe switch products, which are designed to support AI infrastructure. The investment bank added that while they remain optimistic about the company’s growth potential driven by the AI boom, they see no immediate catalyst to justify a re-rating at this time.
9. Lucid Group Inc. (NASDAQ:LCID)
Lucid Group’s (LCID) shares fell for a second day on Tuesday as investors sold off positions following President Donald Trump’s national energy emergency and that he would remove the electric vehicle (EV) mandate put in place by the Biden administration.
The mandate would have required 67 percent of new vehicles and 32 percent of medium vehicles produced in the US to be all electric by 2032.
Lucid Group (LCID), a luxury EV maker, dropped its share prices alongside Tesla Inc., which dipped by 0.57 percent.
With the implementation of the new Trump administration policy, US energy policy is expected to shift toward a less supportive stance on the EV industry. Alongside the removal of the EV mandate, there are strong indications that the administration will also phase out federal subsidies and tax rebates currently offered to consumers purchasing electric vehicles.
8. Terawulf Inc. (NASDAQ:WULF)
Terawulf Inc.’s (WULF) shares dropped for a second day on Tuesday as investors repositioned their portfolios amid the lack of any statements from President Donald Trump on his plans for the cryptocurrency industry.
In recent months, Trump made several promises to the cryptocurrency industry, including releasing a potential executive order to make cryptocurrency a national priority.
However, Monday did not hear any mention of cryptocurrencies at all, leaving the industry disappointed. Many had hoped the crypto-friendly president would drive a transformative shift in US policies toward the volatile asset class, but his silence dashed such expectations.
Investor pessimism both dampened prices of Bitcoin and share prices of cryptocurrency miners. As of this writing, Bitcoin’s prices were already down by 0.39 percent to close at $105,785 apiece.
7. CleanSpark Inc. (NASDAQ:CLSK)
Shares of CleanSpark Inc. (CLSK) declined by 7.67 percent on Tuesday to finish at $10.96 apiece as once-hopeful investors sold off positions after President Donald Trump missed out on announcing any plans on the cryptocurrency industry.
CleanSpark (CLSK) traded lower alongside its peers.
Over the past few months, Trump made several promises for the cryptocurrency industry, including releasing an executive order that would make the asset a national priority.
But on Monday, Trump did not mention cryptocurrencies, disappointing an industry that had eagerly anticipated the crypto-friendly president would usher in a transformative shift in US policies toward the volatile asset class.
Investor pessimism both dampened prices of Bitcoin and share prices of cryptocurrency miners. As of this writing, Bitcoin’s prices were already down by 0.39 percent to close at $105,785 apiece.
6. Walgreens Boots Alliance Inc. (NASDAQ:WBA)
Walgreens Boots Alliance (WBA) saw its shares down by 9.19 percent on Tuesday to close at $11.37 apiece as investors remained cautious following a class action lawsuit by none other than the Justice Department over claims that it was filling millions of unlawful opioid prescriptions.
The suit, which was filed in a court in Illinois on Friday, alleged that Walgreens (WBA) and its subsidiaries knowingly filled millions of unlawful prescriptions for controlled substances from August 2012 up to the present.
Allegedly, Walgreens (WBA) and its pharmacies filled prescriptions for dangerous and excessive quantities of opioids, including early refills among other prescriptions despite clear “red flags.”
The lawsuit also alleged that the pharmacy giant ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data, the suit claims.
5. Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. (PLUG) fell by 9.84 percent on Tuesday to end at $2.20 apiece following news that it is being subject to an investigation concerning potential breaches of fiduciary duties by certain directors and officers of the company.
The investigation, launched by a law firm representing current long-term investors in Plug Power, stems from a lawsuit filed against Plug Power Inc. over alleged violations of securities laws. The inquiry is focused on whether specific company directors are liable for actions related to the claims outlined in the lawsuit.
Filed in the US District Court for the Northern District of New York, the complaint accused the company of making false or misleading statements and failing to disclose key issues such as allegations that Plug Power overstated its ability to mitigate the negative impacts of supply chain constraints and material shortages on its hydrogen business.
The suit also highlighted concerns about the sufficiency of the company’s cash reserves to fund operations, delays in its green hydrogen production facility build-out, and challenges in securing external funding to support its growth initiatives.
4. IREN Ltd. (NASDAQ:IREN)
IREN Ltd. (IREN) dropped its share prices by 9.84 percent to close at $10.81 apiece following the lack of positive developments in the cryptocurrency industry.
IREN followed the downward trend seen in other Bitcoin mining stocks after President Donald Trump failed to address plans for the cryptocurrency industry.
In recent months, Trump has made several promises to the crypto sector, including the potential release of an executive order that would designate cryptocurrency as a national priority.
However, there was no mention of the cryptocurrency industry at all on Monday, leaving investors disappointed. Many had hoped the crypto-friendly president would spearhead a transformative shift in U.S. policies toward the volatile asset class, but his silence dashed those expectations.
Investor pessimism both dampened prices of Bitcoin and share prices of cryptocurrency miners. As of this writing, Bitcoin’s prices were already down by 0.39 percent to close at $105,785 apiece.
3. Trump Media & Technology Group Corp. (NASDAQ:DJT)
Trump Media & Technology Group (DJT) fell by 11.09 percent on Tuesday to close at $35.59 each as investors repositioned their portfolios while waiting for further developments about further plans from the administration.
An analyst had already expected a sell-off following Monday’s inauguration. According to the analyst, “an ensuing slide in these stocks accompanied by strong retail buying would imply institutional investors front-ran retail traders, using them as exit liquidity, thus leaving prices to muddle through thereafter.”
Trump Media (DJT), which is owned by the president-elect, is an American media and technology company headquartered in Florida. It runs the Truth Social social media platform.
The company has remained in a precarious financial position over the past couple of years. The company reported yet another quarterly loss in its third-quarter earnings last November. In the three months ended Sept. 30, Trump Media lost $19.2 million, with revenue falling 5.6% to just $1.01 million from a year earlier.
2. New Oriental Education & Tech Grp (NYSE:EDU)
Shares of New Oriental Education (EDU) fell by 23.25 percent on Tuesday to close at $46.71 apiece after BofA Securities reduced its price target for the company by 17 percent to $68.6 from $82.9.
BofA Securities has revised its non-GAAP Earnings Per Share (EPS) estimates for fiscal years 2025 and 2026, reducing them by 12 percent and 17 percent, respectively. The price target has also been adjusted, reflecting a valuation based on fiscal year 2026 and a lower multiple, given expectations of slower growth. Despite these revisions, BofA Securities maintains a positive outlook on New Oriental Education’s stock, citing an attractive risk-reward profile for investors.
In other news, New Oriental Education & Technology Group Inc. (EDU) reported financial results that fell short of analyst estimates. The company’s adjusted earnings per American depositary share for the recent fiscal second quarter was $0.22, missing the consensus estimate of $0.32.
1. FTAI Aviation Ltd (NASDAQ:FTAI)
FTAI Aviation Ltd (FTAI) was Tuesday’s biggest loser, slashing its share price by 25.44 percent to close at $83.79 apiece following an investigation that revealed the truth about its financials.
Based on an investigation conducted by Bleichmar Fonti & Auld LLP, Muddy Waters claims that FTAI Aviation has been recording one-time engine sales as Maintenance Repair & Overhaul (MRO) revenue in its Aerospace Products segment.
Muddy Waters said that this has enabled the company to present a misleading narrative of growth in its Aerospace Products revenue, which has benefited insider sellers. The research firm estimates that the majority of FTAI Aviation’s adjusted EBITDA in the Aerospace Products segment comes from gains on sales, which are less recurring in nature, and that FTAI Aviation engaged in channel stuffing to inflate its 2023 financial results.
While we acknowledge the potential of FTAI 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 FTAI 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.
