Here’s Why Intuitive Machines Inc. (LUNR) 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 Intuitive Machines Inc. (NASDAQ:LUNR) 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.

A satellite being released from a launch vehicle, heading into space.

Intuitive Machines Inc. (NASDAQ:LUNR)

Intuitive Machines dropped for a second day on Wednesday, losing 9.08 percent to close at $19.62 apiece as investors repositioned portfolios ahead of its scheduled payload launch into the moon over the next few days.

The National Aeronautics and Space Administration (NASA) is set to host a media teleconference on Friday, February 7, to discuss the agency’s science and technology flying aboard Intuitive Machines’ second flight to the Moon. The mission forms part of its Commercial Lunar Payload Services initiative and Artemis campaign to establish a long-term lunar presence.

In other news, Intuitive Machines on Wednesday earned an optimistic outlook from Canaccord Genuity, maintaining its “buy” rating and $26 price target for the company.

The company also announced plans to redeem all outstanding warrants unexercised by March 6, as it aims to simplify its capital structure and increase cash reserves for operations.

Overall LUNR ranks 5th on our list of Wednesday’s top losers. While we acknowledge the potential of LUNR 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 LUNR 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.