Wall Street’s main indices all finished in the green territory on Friday, as investors repositioned their portfolios ahead of president-elect Donald Trump’s return to office.
The Dow jumped by 0.78 percent, while the S&P surged by 1 percent. Meanwhile, Nasdaq soared 1.51 percent.
However, ten companies under mixed sectors bucked an overall positive market sentiment as multiple negative factors put pressure on investor sentiment. In this article, let’s look at the reasons that dragged their shares performance.
To come up with the top 10 losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Stock market data on a laptop
10. Walgreens Boots Alliance Inc. (NASDAQ:WBA)
Walgreens Boots Alliance Inc. (WBA) saw its share prices on Friday drop by 3.17 percent to close at $12.52 apiece as investor sentiment was weighed down by news that it was slapped with a class action lawsuit by none other than the Justice Department over claims that it was filling millions of unlawful opioid prescriptions.
The suit, which was filed in a court in Illinois on Friday, alleged that Walgreens and its subsidiaries knowingly filled millions of unlawful prescriptions for controlled substances from August 2012 up to present.
Allegedly, Walgreens and its pharmacies filled prescriptions for dangerous and excessive quantities of opioids, including early refills among other prescriptions despite clear “red flags.”
The lawsuit also alleged that the pharmacy giant ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data, the suit claims.
9. Snap Inc. (NYSE:SNAP)
Snap Inc. (SNAP), operator of Snapchat, dropped its share prices for a second day on Friday, losing 3.25 percent to finish at $10.86 apiece as investors sold off positions following news that the Federal Trade Commission (FTC) is set to refer a complaint against the company to the Department of Justice over allegations that Snapchat’s My AI chatbot used an artificial intelligence that “poses risks and harms to young users.”
A representative from Snap debunked the claims, saying that its MyAI incorporates “rigorous safety and privacy processes” and that the FTC’s complaint “lacks concrete evidence.”
The FTC said that its probe “uncovered reason to believe Snap (SNAP) is violating or is about to violate the law.”
In other news, investors seem to be on the sidelines looking for cues on TikTok’s decision about its US operations following the Supreme Court’s decision to uphold a law that would require the company to either sell its US operations to an American firm or face a ban. Snap stands to benefit from a potential TikTok exit, with the latter being one of its largest competitors.
8. Immunitybio Inc. (NASDAQ:IBRX)
Shares of Immunitybio Inc. (IBRX) retreated on Friday, losing 3.29 percent to end at $2.94 apiece as investors resorted to profit-taking following Thursday’s surge.
Earlier this week, it can be learned that the company announced plans to submit multiple treatments for approval by the Food and Drug Administration in 2025.
Late Wednesday, Immunitybio (IBRX) said it would submit a supplemental biologics license application (BLA) for the treatment of bladder cancer. If approved by the FDA, the BLAs will allow the company to sell its products across the US.
In addition, it would also submit another BLA for the treatment of patients with a certain type of lung cancer.
ImmunityBio, Inc. (IBRX) said that a Phase 2B study had already indicated positive results for patients whose first and second treatment attempts ended unsuccessfully after using the company’s Anktiva drug in combination with other inhibitors.
7. BlackBerry Ltd. (NYSE:BB)
BlackBerry Ltd. (BB)’s share prices dropped by 5.23 percent on Friday to finish at $3.99 each as investors repositioned their portfolios following the departure of Jay Chai from his position as senior vice president and chief accounting officer for the company effective January 31, 2025.
According to BlackBerry (BB), Chai’s decision to leave the company was to pursue other opportunities. It clarified that the resignation was not due to any disagreements with the company’s strategy, operations, policies, or practices.
At present, BlackBerry (BB) has yet to name a successor for Chai, or whether a search for a new chief accounting officer is underway.
In other news, BlackBerry (BB) recently clinched a deal with Microsoft Corp. to speed up the development of software-defined vehicles (SDV).
The collaboration is set to integrate the QNX software development platform (SDP) 8.0 with Microsoft Azure, a move that will offer developers a robust cloud environment to innovate and refine automotive and Internet of Things applications.
6. Novo Nordisk A/S (NYSE:NVO)
Novo Nordisk A/S (NVO), a multinational pharmaceutical company, saw its share prices on Friday retreat by 5.27 percent to finish at $78.69 after following news that the company’s blockbuster diabetes drug Ozempic and weight-loss treatment Wegovy are among the 15 drugs targeted for Medicare price negotiations for 2027.
A report said Friday that the negotiation process was in line with outgoing president Joe Biden’s signature Inflation Reduction Act of 2022, where 15 new drugs are set to undergo a negotiation process for being among the most expensive drugs.
It can be learned that drug pricing concerns have already helped drag down the company’s valuation last year, alongside increasing competition for its blockbuster obesity and diabetes medicines.
Novo Nordisk (NVO) is a Denmark-based firm that owns drug brands such as Levemir, Tresiba, NovoLog, Novolin R, and Novolin N.
5. FTAI Aviation Ltd. (NASDAQ:FTAI)
FTAI Aviation Ltd. (FTAI) fell by 6.35 percent on Friday to end at $112.38 apiece as news that it was being investigated for allegedly manipulating its financials dragged investor sentiment.
The investigation stemmed from a report by Muddy Waters Research, alleging that FTAI materially manipulates its financials by exaggerating the size of its aftermarket aerospace business, misleading investors by presenting whole engine sales as individual module sales, inflating Aerospace Products’ EBITDA margins by means of over-depreciation in the leasing segment, and engaging in channel stuffing.
Following the report, shareholder law firm Hagens Berman initiated an investigation into FTAI Aviation’s financial reporting practices.
“We are investigating whether FTAI has misled investors about its reported revenue growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
FTAI Aviation Ltd. (FTAI) is a company engaged in aftermarket power and maintenance for the most widely used commercial jet engines.
4. IonQ Inc. (NYSE:IONQ)
Shares of IonQ Inc. (IONQ) dropped 6.42% on Friday, closing at $38.89, as investors seemingly reallocated their portfolios in favor of sectors offering higher potential returns.
IonQ (IONQ)’s decline mirrored the decrease in share prices of its peers such as Rigetti Computing Inc. which fell 12.54 percent, and D-Wave Quantum Inc., which lost 9.22 percent.
In other news, it can be recalled that quantum computing stocks took a beating over the past few weeks following bearish statements from chief executives Jensen Huang of Nvidia Corp. and Mark Zuckerberg of Meta Platforms that the practical use of quantum computers will only be felt 15 to 30 years away.
However, the Nvidia chief said that he thinks the AI chipmaker will play a significant role in the development of quantum computers, and push it toward getting there as fast as possible.
3. Fluence Energy Inc. (NASDAQ:FLNC)
Fluence Energy Inc. (FLNC) saw its share prices on Friday decline by 7.32 percent to close at $14.44 each as investor sentiment remains weighed down by concerns over the Securities and Exchange Commission’s investigation against the company over improper accounting practices.
The investigation stemmed from Blue Orca Capital’s claims in February 2024 alleging that Fluence Energy (FLNC) was artificially inflating revenues and profits through aggressive accounting tactics, including revenue recognition schemes and selective earnings adjustments.
In its report, Blue Orca said: “In our opinion, Fluence Energy, Inc. (FLNC)’s purported improvement over recent quarters is the product of accounting games that have materially inflated revenue growth and Adj. Gross Margins, which we think helps to explain why Fluence is on its third CFO in just over two years.”
Law firm Hagens Berman is currently probing into Fluence Energy (FLNC)’s potential violations of the US securities laws and has urged investors who have suffered substantial losses to come forward.
2. Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. (PLUG) dropped by 10.95 percent on Friday to end the day at $2.44 apiece, in line with overall market sentiment, as investors sold off positions ahead of President-elect Donald Trump’s return to office on Monday.
Earlier this year, Plug Power (PLUG) was not spared from a broader market decline over fears that Trump may declare a national economic emergency to push through his tariff policies.
The statement made investors more cautious and lowered valuations, while Plug Power’s business could also face challenges from the tariffs.
In other news, investors discounted reports that the company secured the green light for Plug Power’s subsidiary, Plug Power Energy Loan Borrower, to construct up to six clean hydrogen facilities for a total of $1.66 billion.
The initiative aligns with the Biden-Harris administration’s strategy to bolster a clean energy economy and is part of the Investing in America agenda, ensuring the US remains a leader in the global energy sector.
1. Rigetti Computing Inc. (NASDAQ:RGTI)
Rigetti Computing Inc. (RGTI) fell by 12.54 percent on Friday to end at $9.83 each as investors seemingly reallocated their portfolios in favor of sectors offering higher potential returns such as Bitcoin mining stocks which led the rally on the last trading day of the week.
In other news, it can be recalled that quantum computing stocks took a beating over the past few weeks following bearish statements from chief executives Jensen Huang of Nvidia Corp., and Mark Zuckerberg of Meta Platforms that the practical use of quantum computers will only be felt 15 to 30 years away.
However, the Nvidia chief said that he thinks the AI chipmaker will play a significant role in the development of quantum computers, and push it toward getting there as fast as possible.
While we acknowledge the potential of RGTI 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 as promising as RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
