8 Worst Performing Tech Stocks in 2024

3. Viasat, Inc. (NASDAQ:VSAT)

Year to Date Gain: -60.56%%

Number of Hedge Fund Holders: 17

Viasat, Inc. (NASDAQ:VSAT) is a space satellite communications company that offers broadband and communications products and services. It provides in-flight connectivity and wireless in-flight entertainment services for commercial aircraft and private jets.

It has emerged as one of the worst-performing tech stocks in 2024, having lost 60.56% in market value over the past year. The implosion started last year after the stock tanked on reports of a glitch in one of the company’s new satellites. The company admitting the issue and explaining potential mitigation rattled the markets.

Viasat, Inc. (NASDAQ:VSAT)’s sentiments also took another hit after it emerged that United Airlines will no longer leverage its In-Flight Connectivity (IFC) in its planes, opting to shift to Elon Musk-backed Starlink. The shift translates to a significant loss of a key revenue stream that did not go well with investors.

Despite the aforementioned difficulties, Viasat, Inc. (NASDAQ:VSAT) has demonstrated robust revenue growth, as evidenced by its 67.71% increase in the previous 12 months as of fiscal Q1 2025. Nevertheless, profitability is still an issue, though. Over the past 12 months, the company has not turned a profit. The operating income for the same period was negative, coming in at -$667.25 million.

The company has moved to strengthen its long-term prospects through strategic alliances with telecom firms, which allow it to expand into new markets and gain more clients. Furthermore, it is also investing in innovation and has made significant investments in R&D to enhance its satellite technology, strengthening its position as a leader in satellite communications while improving service quality and increasing capacity. It is also pursuing international expansion in Europe and Asia as it seeks to diversify its clientele and create new revenue streams.

Investor sentiment was negative toward Viasat, Inc. (NASDAQ:VSAT) in Q2 as the stock was part of 17 hedge funds’ portfolios, compared to 21 hedge funds in the first quarter of 2024. FPR Partners is the top investor in the company and has a position worth $19.35 million as of the second quarter.

Cove Street Capital stated the following regarding Viasat, Inc. (NASDAQ:VSAT) in its first quarter 2024 investor letter:

“Regarding Viasat, Inc. (NASDAQ:VSAT), we do not have much to say here other than up quarter/down quarter performance prevails as the company awaits the launch of its next satellite of capacity. The company continues to be an outstandingly cheap stock with multiple catalysts.”