10 Worst-Performing Growth Stocks in 2024

4. STMicroelectronics N.V. (NYSE:STM)

Year to Date Gain as of October 28: -41.63%

Number of Hedge Fund Holders: 16

STMicroelectronics (NYSE:STM) is a technology company that designs, develops, and sells semiconductor products. It is turning out to be one of the worst-performing growth stocks in 2024, having a slide 41.63% year to date.

The slide comes on investors reacting to the company facing a downturn amid a reduction in its full-year revenue guidance owing to weak demand for its semiconductor devices in the industrial and automotive sectors. There are already concerns that gross margins could plunge to 16 quarter low, inventory days having surged to their highest level since 2000.

Due to declining automotive demand and unimpressive industrial customer orders, chipmaker STMicroelectronics (NYSE:STM) lowered its full-year revenue and margins guidance for the second time. The company lowered its previous forecast of $14 billion to $15 billion in revenue for 2024 to $13.2 billion to $13.7 billion.

STMicroelectronics (NYSE:STM)’s revised revenue outlook reflects the difficulties in its main markets, which calls for further declines. The company’s financial performance may be impacted by this pessimistic forecast, which comes amid a larger backdrop of inventory oversupply and declining demand.

STMicroelectronics (NYSE:STM) was part of 16 hedge funds’ portfolios that are tracked by Insider Monkey in the second quarter with a total stake value of $231.780 million. D E Shaw is the biggest shareholder in the company and has a position worth $96.072 million as of Q2.