Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.
The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.
On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.
In this article, let us explore the companies that were hit the hardest on Monday, and look at the specific factors that drove down their losses.
Our list of Monday’s top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.
A stock market graph. Photo by energepic.com on Pexels
10. Super Micro Computer Inc. (NASDAQ:SMCI)
Information Technology company Super Micro Computer dropped its share prices by 5.86 percent on Monday to finish at $26.85 apiece as investors sold off positions before the release of the company’s earnings performance after the market closed on the same day.
According to Nasdaq, Wall Street analysts were expecting Super Micro Computer to book a staggering 48 percent in earnings growth, as well as revenues of $6 billion and earnings per share of 66 cents apiece.
Operating at the forefront of AI and high-performance computing, Super Micro is strategically positioned to capitalize on emerging opportunities in a market that is rapidly gaining momentum.
Just recently, the company resolved concerns over alleged misconduct in its accounting practices, confirming that an investigation found no evidence of wrongdoing. However, it announced plans to replace its Chief Financial Officer as a precautionary measure.
9. PDD Holdings Inc. (NASDAQ:PDD)
Shares of Temu parent PDD Holdings extended a losing streak for the second day on Monday, losing 5.96 percent to close at $105.24 apiece as investor sentiment was dampened by the US imposition of a hefty tariff rate on Chinese goods.
On Saturday, President Donald Trump officially signed the imposition of an additional 10 percent tariffs on Chinese goods, as well as 25 percent on imports from neighboring countries Canada and Mexico.
The development closes a loophole that Chinese online retailers such as Temu and Shein have been using to avoid US taxes. Called the “de minimis” exemption, or a Latin term that means “too small to matter,” the loopholes let packages worth less than $800 be brought to the US without any customs fees.
It has become a big advantage for companies like Temu and Shein, as it helped them sell products like clothes, furniture, electronics, and home decor at very low prices as they try to expand in the US.
8. Canadian Pacific Kansas City Ltd. (NYSE:CP)
Shares of Canadian Pacific, a railway holding company, saw its share prices drop by 6.09 percent on Monday to finish at $74.75 apiece as investor sentiment was weighed down by fears of brewing trade conflict between Canada and the US, amid the latter’s imposition of tariffs on Canadian goods.
On Saturday, President Donald Trump officially signed the US’ slapping of 25-percent taxes on Canadian goods, albeit the move was delayed for a month to give US companies a chance to look for alternative partners and supplies.
The tariff imposition pushed Loop Capital Markets to downgrade its outlook for Canadian Pacific from “buy” to “sell” suggesting a bearish short-term outlook.
According to Rick Paterson, analyst at Loop Capital, the company’s unique exposure to trade between the United States and Canada was a key reason for the downgrade. Canadian Pacific operates rail lines on both sides of the US-Canada border, positioning it at the forefront of any potential trade disruptions caused by the new tariffs.
7. Magna International Inc. (NYSE:MGA)
Magna International dropped its share prices by 6.35 percent on Monday to finish at $37.15 each as investor sentiment was dragged down by the US imposition of tariffs on Canadian goods.
Magna International, a leading Canadian automotive parts manufacturer, faces significant risks from potential tariffs, at a time when it just launched a new manufacturing facility in Maharashtra, India.
Spanning nearly 6,000 square meters, the new facility will produce advanced latches and mirrors for automotive applications. Additionally, the new site reportedly will create 300 jobs over the next three years.
According to its financial reports, Mexico, Canada, and China—three countries now grappling with the recent US tariff hikes—represent some of Magna’s most significant end markets outside of the United States. The said regions are critical to Magna’s global supply chain and revenue, making the impact of tariffs particularly concerning for the company.
In 2023, the three markets were said to have contributed 34 percent of its total sales.
6. Franklin Resources Inc. (NYSE:BEN)
Shares of Franklin Resources tumbled by 6.83 percent on Monday to end at $20.72 apiece as investors resorted to profit-taking following gains on Friday, thanks to its better-than-expected fourth-quarter earnings performance.
During the quarter ending December 2024, Franklin Resources said it swung to a net income of $163.6 million from a net loss of $84.7 million during the third quarter of 2024.
However, the gains in share price were short-lived, as investors remained cautious due to a notable decline in net income compared to the $251.3 million reported in the same period last year.
Operating income was at $219 million during the period, as compared with an operating loss of $150.7 million for the previous quarter and operating income of $206.5 million in the same period last year.
Revenues were also higher at $2.25 billion than the analysts’ consensus of $1.71 billion.
5. Tetra Tech Inc. (NASDAQ:TTEK)
Tetra Tech shares dropped 7.04 percent to $34.21 on Monday, mirroring the broader market’s decline. The stock’s slide came on the heels of a recent dip to a new 52-week low last week.
Despite a strong earnings performance and a robust dividend program that has delivered 11 consecutive years of increases, analysts believed that Tetra Tech’s valuation was already stretched, signaling that the stock may have already been oversold.
Just recently, Tetra Tech reported a 16-percent increase in its revenues for the first quarter of fiscal year 2025, settling at $1.42 billion, surpassing analyst estimates. The company also raised the high end of its fiscal 2025 earnings guidance.
In the same period, Tetra Tech posted adjusted earnings per share of 35 cents, exceeding the analyst consensus of 34 cents, with net revenues—excluding subcontractor costs—rising 18 percent year-on-year at $1.2 billion.
4. Moderna Inc. (NASDAQ:MRNA)
Pharmaceutical giant Moderna Inc. lost 7.28 percent of its value on Monday to end the day at $36.55 apiece as investors continued to sell off positions following Goldman Sachs’ downgraded outlook for the company.
Last week, Goldman Sachs downgraded Moderna’s stock rating to “neutral” from “buy,” saying that the negative revisions to product revenue guidance suggest that the biotechnology company has limited visibility into the sales trajectory of its respiratory vaccine business. Moderna earlier projected revenues for fiscal year 2025 to settle between $1.5 billion and $2.5 billion.
While recognizing that products in Moderna’s pipeline could contribute to sales in the medium term, including the individualized neoantigen therapy in partnership with Merck, as well as Phase 1/2 cystic fibrosis data in partnership with Vertex Pharmaceuticals, Goldman Sachs said high levels of operating expenses were an additional concern.
3. JetBlue Airways Corp. (NASDAQ:JBLU)
JetBlue Airways shares fell 8.21 percent on Monday, closing at $6.04, amid growing uncertainty over its business prospects. The decline followed continued denials from United Airlines regarding rumors of merger talks with JetBlue.
The speculation originated from a social media post by a well-known aviation insider, who has a solid track record of breaking major stories in the industry. According to the social media post citing sources privy to the matter, United Airlines is reportedly setting its sights on JetBlue, although it remained unclear whether the discussions were about a potential merger or an acquisition of assets. United Airlines dismissed those rumors in a filing with the SEC.
In addition, JetBlue traded lower in line with an overall decline in US airline stocks on the back of higher oil prices following President Donald Trump’s hefty tariffs on a range of imports, including crude from Canada and Mexico, threatening higher costs for American consumers.
The US gets most of its oil imports from Canada, as well as about 500,000 barrels a day from Mexico.
2. Polaris Inc. (NYSE:PII)
Automotive manufacturer Polaris Inc. dropped its share prices by 8.39 percent on Monday to end at $43.70 apiece after earning a downgraded outlook from investment research giant S&P Global.
According to S&P, it revised its credit rating outlook for Polaris from “stable” to “negative” based on expectations that S&P Global Ratings-adjusted debt to EBITDA will slightly exceed the 3x downgrade threshold in 2025.
While the company was expected to bank on free cash flow to repay debt, S&P Global said future deleveraging will partly depend on a recovery in the power sports industry and stable macroeconomic conditions.
Last year, Polaris and the broader powersports industry suffered a difficult retail environment, with total revenues declining by approximately 20 percent year-on-year. North American Powersports retail sales also saw an 8 percent drop, driven by higher interest rates and a delayed replacement cycle. The downturn is expected to persist through at least the first half of 2025.
1. BridgeBio Pharma Inc. (NASDAQ:BBIO)
BridgeBio Pharma’s shares plummeted by 9.3 percent on Monday to finish at $31.03 each after one of its largest investors, Global Investors Lp Viking, disposed of 3.06 million shares in the company for a transaction worth nearly $107 million. The sell-off marked a 12-percent slash in its ownership in BridgeBio.
Following the sale, Global Investors now owns 22 million shares of BridgeBio’s stock, valued at $769.7 million.
BridgeBio Pharma is a commercial-stage biopharmaceutical company committed to the discovery, development, and commercialization of pioneering medicines for patients with genetic diseases and genetically driven cancers. By leveraging cutting-edge science and a deep understanding of genetics, the company aims to provide targeted, transformative treatments that address the root causes of these conditions.
While we acknowledge the potential of BBIO 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 BBIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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