Here’s Why Dayforce Inc. (DAY) Crashed on Wednesday

We recently compiled a list of the 10 Firms Defy Wednesday’s Broader Market Optimism. In this article, we are going to take a look at where Dayforce Inc. (NYSE:DAY) stands against the other stocks.

Wall Street extended its winning streak on Wednesday, with all of its main indices closing in the green territory, as investors seemed to have already factored in the news of tariffs imposition alongside uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies, however, defied a broader market optimism, mostly due to disappointing earnings results. This article details the reasons behind the drop in their share prices and latest earnings performance.

To come up with Wednesday’s biggest losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Dayforce Inc. (NYSE:DAY)

Dayforce Inc. shares dived by 8 percent on Wednesday to end at $66 apiece as investors sold off positions following disappointing earnings performance last year.

In its latest earnings release, Dayforce said net income for the fourth quarter of the year plummeted by 76 percent to $10.8 million from the $45.6 million registered in the same period last year, while net profit for the full year 2024 dived 67 percent to $18.1 million from the $54.8 million registered in 2023.

This came despite achieving a 16-percent increase in revenues for both the fourth quarter and full year 2024.

For this year, however, Dayforce is looking to book total revenues between $421 million and $427 million for the fourth quarter, and a full-year revenue guidance of between $1.75 billion and $1.76 billion.

“We are optimistic about 2025 as current and prospective customers continue to recognize the value the Dayforce platform provides as they streamline HCM processes and navigate compliance complexities,” Dayforce Chairman and CEO David Ossip said.

Overall DAY ranks 7th on our list of Wednesday’s top losers. While we acknowledge the potential of DAY 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 DAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.