5 Worst Performing NASDAQ Stocks In 2023

In this article, we discuss 5 worst performing NASDAQ stocks in 2023. If you want to read our detailed discussion on the stock market performance this year, head over to 15 Worst Performing NASDAQ Stocks In 2023. 

5. Concentrix Corporation (NASDAQ:CNXC)

Number of Hedge Fund Holders: 24

YTD Share Price Decline as of July 30: 37.20%

Concentrix Corporation (NASDAQ:CNXC) is a worldwide provider of technology-led customer experience (CX) solutions. The company offers CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services. As of July 30, Concentrix Corporation (NASDAQ:CNXC) stock has dropped 37.2% year-to-date, which merits its inclusion on our list of the worst performing NASDAQ stocks in 2023. 

On June 28, Concentrix Corporation (NASDAQ:CNXC) declared a quarterly dividend of $0.275 per share, in line with previous. The dividend is payable on August 8, to shareholders of record on July 28. 

According to Insider Monkey’s first quarter database, 24 hedge funds were bullish on Concentrix Corporation (NASDAQ:CNXC), compared to 25 funds in the prior quarter. Lauren Taylor Wolfe’s Impactive Capital is the leading stakeholder of the company, with 1.65 million shares worth $200.6 million. 

FPA made the following comment about Concentrix Corporation (NASDAQ:CNXC) in its Q3 2022 investor letter:

“Concentrix Corporation (NASDAQ:CNXC) is a customer experience solutions provider that has expanded from call centers to a wider suite of customer engagement products and solutions. We followed the company for years as part of Synnex (it was spun out in December 2020) and have always been impressed with its consistent growth, customer wins and product expansions. The share price nearly doubled in 2021 following the spin and we believe that this year’s reversal is a response to moderating growth and a valuation that got ahead of itself.”

4. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 55

YTD Share Price Decline as of July 30: 39.07%

Enphase Energy, Inc. (NASDAQ:ENPH), an American provider of home energy solutions for the solar photovoltaic industry, ranks 4th on our list of the worst performing NASDAQ stocks in 2023. On July 28, Enphase Energy, Inc. (NASDAQ:ENPH) experienced a 10.2% drop in early trading after failing to meet Q2 revenue expectations and providing disappointing guidance for Q3 revenues. Following this, Deutsche Bank downgraded Enphase Energy, Inc. (NASDAQ:ENPH) from Buy to Hold and adjusted their price target from $200 to $165, citing increased caution about the company’s growth prospects over the next 6-12 months.

According to Insider Monkey’s first quarter database, 55 hedge funds held stakes in Enphase Energy, Inc. (NASDAQ:ENPH), down from 63 funds in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 714,442 shares worth $150.2 million. 

Here is what Aristotle Atlantic Large Cap Growth Strategy had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its investor letter for the first quarter of 2023:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”

3. GDS Holdings Limited (NASDAQ:GDS)

Number of Hedge Fund Holders: 22

YTD Share Price Decline as of July 30: 42.97%

GDS Holdings Limited (NASDAQ:GDS) is a company in China that develops and operates data centers. The company offers colocation services, managed hosting services, managed cloud services, and consulting services. GDS Holdings Limited (NASDAQ:GDS) is one of the worst performing NASDAQ stocks in 2023. On May 25, the company reported a Q1 GAAP loss per share of $0.05, exceeding Wall Street estimates by $0.12. However, the revenue of $350.8 million fell short of market consensus by $11.81 million. 

According to Insider Monkey’s first quarter database, GDS Holdings Limited (NASDAQ:GDS) was part of 22 hedge fund portfolios, compared to 20 in the earlier quarter. Joel Ramin’s 12 West Capital Management is the largest stakeholder of the company, with 6.2 million shares worth $116 million. 

Here is what Baron Partners Fund has to say about GDS Holdings Limited (NASDAQ:GDS) in its Q4 2021 investor letter:

“The Fund’s Core Growth investments were negatively impacted by the market rotation to value-oriented businesses. Fundamentals for most of our Core Growth holdings remain strong. We exited two positions in this space, which included GDS Holdings Limited. GDS, a Chinese data center, suffered from increased oversight and regulation from the Chinese government. While we still appreciate the long-term prospects for both businesses, we believe the current environment for both is difficult and uncertain.”

2. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 35

YTD Share Price Decline as of July 30: 44.75%

DISH Network Corporation (NASDAQ:DISH) offers pay-TV services within the United States. The company has two main segments – Pay-TV and Wireless. DISH Network Corporation (NASDAQ:DISH) ranks 2nd on our list of the worst performing NASDAQ stocks in 2023 based on year-to-date share price decline. On May 8, DISH Network Corporation (NASDAQ:DISH) reported a Q1 GAAP EPS of $0.35 and a revenue of $3.96 billion, falling short of Wall Street estimates by $0.04 and $100 million, respectively. In the first quarter of 2023, Pay-TVNet experienced a decrease of approximately 552,000 subscribers, which was higher than the decline of about 462,000 subscribers in the prior-year quarter.

According to Insider Monkey’s first quarter database, 35 hedge funds were bullish on DISH Network Corporation (NASDAQ:DISH), compared to 37 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is the largest stakeholder of the company, with approximately 15 million shares worth $139.6 million. 

ClearBridge Large Cap Value Strategy made the following comment about DISH Network Corporation (NASDAQ:DISH) in its first quarter 2023 investor letter:

“DISH Network Corporation (NASDAQ:DISH) was lower for more idiosyncratic reasons. The pay-TV provider, with unique potential to become a viable fourth wireless carrier, continues to face challenges executing its wireless buildout in a higher rate environment where a leveraged balance sheet is a liability. We believe there is still value to be captured for Dish, but it is clearly taking longer to realize, and we are monitoring the stock closely.”

1. NovoCure Limited (NASDAQ:NVCR)

Number of Hedge Fund Holders: 19

YTD Share Price Decline as of July 30: 50.96%

NovoCure Limited (NASDAQ:NVCR) is an oncology company that focuses on developing, manufacturing, and selling tumor treating fields (TTFields) devices. These devices are used to treat solid tumor cancers in the United States, Europe, the Middle East, Africa, Japan, and China. Based on year-to-date share performance as of July 30, NovoCure Limited (NASDAQ:NVCR) is one of the worst performing NASDAQ stocks this year. 

On July 27, NovoCure Limited (NASDAQ:NVCR) reported a Q2 GAAP loss per share of -$0.54, missing market estimates by $0.04. The revenue dropped 10.5% year-over-year to $126.05 million, outperforming analysts’ expectations by $1.8 million. 

According to Insider Monkey’s first quarter database, 19 hedge funds were bullish on NovoCure Limited (NASDAQ:NVCR), compared to 17 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is the leading stakeholder of the company, with 358,029 shares worth $21.5 million. 

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