The stock market ended the trading week in a bloodbath, with major indices registering losses amid concerns over a slowing economy and sticky inflation.
The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.
Ten stocks mirrored a broader market decline, posting double-digit losses, with sentiment for most of the companies dampened by dismal earnings performance.
In this article, we have listed the 10 worst-performing stocks and explored the reasons behind their declines.
To come up with Friday’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A person holding a cup of coffee while reading stock market data on the phone. Photo by Anna Nekrashevich on Pexels
10. Bitdeer Technologies Group (NASDAQ:BTDR)
Bitcoin miner Bitdeer Technologies dropped its share prices by 12.32 percent on Friday to finish at $13.09 apiece as investors underwent portfolio repositioning ahead of its earnings release on Tuesday, February 25, on whether it would miss or beat analyst estimates, having missed expectations for two quarters last year.
Additionally, BTDR announced earlier this week a drop in its Bitcoin production for January to only 126 due to higher seasonal electricity prices that curtailed its Bhutan site.
In addition, it expects a one-month delay in production for its SEALMINER A2 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.
Bitdeer Technologies Group is a world-leading technology company for blockchain and high-performance computing.
9. Arbor Realty Trust Inc. (NYSE:ABR)
Arbor Realty Trust Inc. saw its share prices decline by 13.29 percent on Friday to finish at $12 apiece as investor sentiment was dampened by expectations of shrinking earnings amid challenges of higher interest rates.
On Friday, ABR announced that its net income attributable to shareholders fell by 34.7 percent to $59.8 million during the fourth quarter last year from $91.6 million registered in the same period a year earlier. Meanwhile, net income for the full year decreased by 29 percent to $283 million from $400 million in 2023.
Earnings per share (EPS) for the quarter settled at 40 cents, while full-year EPS stood at $1.74.
For this year, ABR expects a number of key factors to challenge the company, including high interest rates that could impact earnings, volatility in the commercial real estate lending market, higher competition in bridge lending, loan risks, and ongoing legal expenses related to short seller reports.
8. Nebius Group NV (NASDAQ:NBIS)
Nebius lost 13.87 percent of its value on Friday to end at $39.83 apiece following mixed earnings performance in the fourth quarter last year.
During the quarter, NBIS widened its net loss by 2.5 percent to $87.5 million from $85.3 million year-on-year, while net loss from continuing operations jumped by 55.5 percent to $136.6 million from $88.3 million. Meanwhile, revenues for the period surged by 466 percent to $37.9 million from $6.7 million.
For the full year, adjusted net loss narrowed by 11.8 percent to $282.9 million from $320.9 million in 2023, while net loss from continuing operations grew by 17.9 percent to $396.9 million from $336.6 million. Revenues spiked by 462 percent to $117.5 million from $20.9 million in 2023.
7. Sprouts Farmers Market Inc. (NASDAQ:SFM)
Sprouts fell by 15.59 percent on Friday to end at $143.32 each as investors sold off positions, shunning news of its impressive earnings performance last year.
The company’s shares traded in line with the overall market downturn, as well as the drop in the grocery stores sector which shed 2.79 percent on Friday amid inflation concerns.
In its earnings release, SFM said it achieved a 59.2-percent higher net income in the fourth quarter of 2024 at $79.6 million versus the $50 million registered in the same period last year, with net sales increasing 17.5-percent to $1.996 billion from the $1.698 billion year-on-year.
Net income for the full year rose by 47 percent to $380 million from $258.8 million in 2023, while revenues grew by 12.9 percent to $7.7 billion from $6.8 billion.
The latest survey from the University of Michigan released Friday said that US consumer sentiment declined this February, a second straight month, amid concerns about Trump’s tariffs jacking up prices of goods.
6. Dropbox Inc. (NASDAQ:DBX)
Dropbox fell for a third consecutive day on Friday, losing 16.15 percent to finish at $26.73 apiece as investors unloaded portfolios following a dismal earnings performance last year.
In a statement, DBX said net income dropped by 55 percent to $102.8 million in the fourth quarter of the year from $227.3 million in the same period a year earlier while revenues inched up by only 1.3 percent to $643.6 million from $635 million.
Net income for the full year was also flat at $452.3 million from $453.6 million in 2023, while revenues eked out a 1.8-percent gain at $2.548 billion from $2.501 billion.
“Looking ahead to 2025, we’ll continue with our strategy of scaling Dash, simplifying and strengthening our profitable core business, and integrating Dash and FSS to deliver even greater value to our customers. While still early, the positive feedback from our Dash users has been encouraging, validating the need for practical AI-powered tools that solve real customer pain points in finding and securing all their content,” said DBX CEO Drew Houston.
Dash is DBX’s AI-powered universal search tool which makes it easy for teams to search, organize, share, and protect content from across their connected apps, all in one place.
5. Block Inc. (NYSE:XYZ)
Block Inc. fell for a third straight day on Friday, losing 17.69 percent to end at $68.35 apiece as investor sentiment was dampened by economic uncertainties that could potentially impact the company’s growth.
Investors’ focus was on the company’s “buy now, pay later” (BNPL) lending program’s ability to drive profits, especially as consumer spending growth remained at a slow pace over the past few weeks amid uncertainties brought about by President Donald Trump’s trade policies that could jack up consumer prices.
XYZ’s Cash App business, which enables peer-to-peer mobile payments, saw gross profit grow by only 16 percent during the holiday quarter, slower than the 25 percent a year earlier.
According to an analyst from Morningstar, the long-term economics of XYZ’s Cash App remains the biggest point of uncertainty and its growth trajectory remains in question.
4. Nu Holdings Ltd. (NYSE:NU)
Nu Holdings dropped for a fifth straight day on Friday, losing 18.89 percent to finish at $10.82 each as investors shunned news of better earnings performance while focusing on the decline in its net interest margins.
Net income in the fourth quarter of the year expanded by 85 percent to $552.6 million from $298.2 million in the same period last year, while revenues increased by 24 percent to $2.989 billion from $2.404 billion year-on-year.
Net income for the full year more than doubled to $1.972 billion from $983 billion, as revenues increased by 43 percent to $11.5 billion from $8.03 billion.
Net interest margin, however, became a concern after contracting for the second straight quarter, by 17.7 percent, mainly due to foreign exchange volatility and its deposit strategy in Mexico and Colombia.
Nu grew its customer base by 4.5 million in the fourth quarter, bringing its full-year tally to 114.2 million, or an increase of 22 percent year-on-year.
3. Akamai Technologies Inc. (NASDAQ:AKAM)
Akamai fell for a second day on Friday, losing 21.73 percent to finish at $76.73 each as investor sentiment was weighed down by the drop in the company’s net income last year.
In a statement, AKAM said net income dropped by 13 percent in the fourth quarter of the year to $139 million from $161 million year-on-year, while net profit for the full year declined by 7.8 percent to $504.9 million from $547.6 million.
Revenues for the quarter period, however, inched up by 2.4 percent, while revenues for the full year grew 4.7 percent to $3.99 billion from $3.8 billion.
Additionally, traders focused on the company’s 2025 revenue outlook which came up short of analysts’ expectations.
For the first quarter, AKAM expects revenues to settle between $1 billion to $1.02 billion, while revenues were pegged between $4 billion to $4.2 billion for the full year 2025.
2. Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers nosedived by 25.79 percent on Friday to finish at $49.28 apiece as investors sold off on news that the supply shortage for US’ bestselling weight loss and diabetes drugs Wegovy and Ozempic has already been addressed.
According to the Food and Drug Administration, supply is currently meeting or exceeding demand, and Novo Nordisk has developed a product inventory to cover future demand.
The news took a hit on HIMS, which has been making a compounded knock-off version of the blockbuster treatments, at a time when it announced the purchase of a plant to manufacture the class of drugs that includes Wegovy and Ozempic.
US regulations allow compounding pharmacies to copy branded medicines that are facing supply shortages. Wegovy and Ozempic have been in shortage in the US for already two years.
1. Globant SA (NYSE:GLOB)
Globant fell to its lowest level in eight months—a fifth straight day of decline—following a mixed earnings performance last year coupled with a rating downgrade from an investment research firm.
At intra-day trading, GLOB touched its lowest price of $151.38—or a 27.9-percent decline from its previous close of $210.17—before gaining a little momentum to end the day down 27.81 percent at $151.72 apiece.
In the fourth quarter of 2024, net income dropped by 4 percent to $39.5 million from $41.3 million in the same period in 2023, but net profit for the full year remained at a growth of 6.9 percent to $169 million from $158.5 million year-on-year.
Revenues for the last quarter increased by 10.68 percent to $642 million from $580.7 million, while revenues for the full year grew 15 percent to $2.4 billion from $2.09 billion in 2023.
Following its earnings announcement, TD Cowen maintained a “buy” rating on the stock but reduced its price target to $245 from $270 previously.
While we acknowledge the potential of GLOB 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 GLOB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
