Wall Street’s main indices finished mixed on Friday, with the tech-heavy Nasdaq emerging as the sole gainer, rallying 0.41 percent. The Dow Jones, for its part, decreased by 0.37 percent, while the S&P 500 was little changed, dipping 0.01 percent.
Ten companies mirrored a mostly pessimistic broader market. In this article, we identified the 10 major losers and explored the factors driving their significant drops.
To come up with this list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Stock market data. Photo by Alesia Kozik on Pexels
10. Nuscale Power Corp. (NYSE:SMR)
Nuscale Power dropped for a second day on Friday, losing 6.6 percent to close at $23.08 apiece as investors resumed profit-taking following a surge earlier in the week while staying on the sidelines ahead of more concrete updates for the nuclear energy industry.
While outlooks for SMR were generally bullish amid the company’s expected ride on the booming energy industry, Friday’s trading suggested a lack of fresh catalyst to spark buying appetite.
Over the next few years, SMR is expected to benefit from the government’s plan to prioritize boosting energy demand from various energy sources, coupled with an expected uptick in demand from companies in the Artificial Intelligence industry.
According to President Donald Trump, he expects the energy industry to power up the country’s manufacturing sector.
Meanwhile, the International Energy Agency (IEA) said in its earlier report that SMR’s business prospects were bullish, saying its small modular reactors were particularly promising.
9. Ingersoll Rand Inc. (NYSE:IR)
Shares of Ingersoll Rand declined by 7.38 percent on Friday to close at $85.72 apiece as investors sold off positions after reporting mixed earnings performance last year.
In the last quarter of 2024, IR said net income was flat at $231 million versus the same period a year earlier, despite revenues inching up by 4 percent to $1.89 billion from $1.82 billion in the same period.
Full-year net profit, however, grew 7.8 percent to $846.3 million from $785.1 million in 2023.
For 2025, IR said it expects revenues to grow between 3 to 5 percent and adjusted EBITDA of $2.13 billion to $2.19 billion, representing 6 to 9 percent growth year-on-year.
“We…significantly outpaced our inorganic growth commitments last year and are poised for another strong year of M&A [mergers and acquisitions] activity in 2025. In what continues to be a dynamic global market environment, we remain nimble and focused as we continue to deliver financial durability by meeting our long-term commitments,” said IR Chairman and Chief Executive Officer Vicente Reynal.
8. BigBear.ai Holdings Inc. (NYSE:BBAI)
BigBear.ai snapped a two-day winning streak on Friday, losing 7.77 percent to close at $9.02 apiece as investors resorted to profit-taking following a surge earlier in the week.
Earlier last week, the company, along with its counterparts, earned a boost from US Vice President JD Vance’s speech at an AI summit in Paris, saying that the government “will…work with our allies and partners to strengthen and extend these protections and close pathways to adversaries attaining AI capabilities that threaten all of our people.”
“This administration will ensure that American AI technology continues to be the gold standard worldwide…The United States of America is the leader in AI, and our administration plans to keep it that way,” he said.
Meanwhile, BBAI also bagged a deal with the Department of Defense to support the agency’s initiative to enhance news media assessment and analysis of countries that are deemed as US potential enemies through the use of BBAI’s Virtual Anticipation Network prototype.
7. Coinbase Global Inc. (NASDAQ:COIN)
Coinbase Global saw its share prices decline by 7.98 percent on Friday to end at $274.31 each after an investment research firm slashed its target price for the company amid expected headwinds in its revenue model.
On Friday, CFRA analyst Michael Elliott lowered his price target for COIN by 3 percent to $325 from $335 previously, while maintaining a “hold” rating.
According to the analyst, COIN benefits from significant regulatory tailwinds, but also underscored concerns about its revenue model, with 61 percent of total revenue being transactional, which ties it closely to the fluctuating prices of underlying cryptocurrency tokens.
According to Elliott, the revision reflects a slight decrease in the 12-month target based on an enterprise value-to-sales ratio of 10.7 times CFRA’s 2025 sales estimate.
Despite the numbers, CFRA raised its earnings per share target for the company to $6.32 for 2025 and introduced a $7.06 EPS target for 2026.
6. Applied Materials Inc. (NASDAQ:AMAT)
Applied Materials dropped its share prices by 8.18 percent on Friday, to close at $169.20 each as investors sold off positions following weak earnings and full-year outlook.
In a statement, AMAT said its net income for the first quarter of fiscal year 2025 fell by 41 percent to $1.185 billion from $2.019 billion in the same period a year earlier, even as revenues grew 7 percent to $7.166 billion from $6.707 billion year-on-year.
For the next quarter, AMAT expects revenues to settle at $7.1 billion. While that would be up on a year-on-year basis, investors took path from the company’s potential risks from exports, with the new tariff imposition expected to hurt the company’s revenues by $400 million for the full fiscal year 2025, half of which will be booked in the second quarter of the year.
“For the second fiscal quarter, we are encouraged by the trends supporting continued customer investments to enable leading-edge technology inflections, while also taking into account export control-related headwinds,” said AMAT Chief Finance Officer Brice Hill.
5. Coeur Mining Inc. (NYSE:CDE)
Shares of Coeur Mining retreated by 8.45 percent on Friday to end the day at $6.61 apiece following the company’s completion of its merger with SilverCrest Metals Inc., while investors repositioned portfolios ahead of CDE’s earnings performance release next week.
On Friday, CDE announced that it successfully acquired all of the issued and outstanding common shares of SilverCrest, with the latter’s shareholders receiving 1.6022 CDE common shares for each SilverCrest common share. CDE issued more than 239 million shares in the transaction.
CDE said BMO Capital Markets and Goldman Sachs & Co. LLC acted as financial advisors to CDE. Meanwhile, Goodmans LLP, as well as Gibson, Dunn & Crutcher LLP acted as its legal advisors.
CDE said it plans to share additional information about the expected benefits of the transaction, including 2025 production and cost guidance, when it releases its earnings performance for the fourth quarter and full year of 2024 next week.
4. Hecla Mining Company (NYSE:HL)
Hecla Mining fell for a second day on Friday, losing 14.60 percent to end at $5.44 apiece as investors sold off positions after the company missed analysts’ earnings expectations.
Despite impressive earnings performance for the fourth quarter and full year 2024, investors focused on the company missing earnings per share targets, registering only 2 cents as compared with the 6 cents expected by analysts.
For the last quarter of 2024, HL swung to an attributable net income of $11.8 million as compared with a $43-million net loss in the same period a year earlier. It also registered a net profit of $35 million in full-year 2024, reversing an $84-million net loss in 2023.
Sales in the said quarter increased by 55 percent to $249 million from $160 million year-on-year, while that of full-year 2024 increased 29 percent to $929 million from $720 million.
3. Twilio Inc. (NYSE:TWLO)
Twilio Inc. saw its share prices fall by 15 percent on Friday to end at $125.17 each as investor sentiment was dampened by the company’s weak outlook guidance for the current quarter while shunning news of improved earnings performance last year.
In its earnings release on Friday, TWLO said it expects earnings per share for the current quarter to settle between 88 cents and 93 cents, missing analysts’ consensus of 99 cents.
The company also pegged revenues to end between $1.13 billion and $1.14 billion, representing growth of 8 to 9 percent.
During the last quarter, TWLO narrowed its net losses by 96 percent to $12.47 million versus the $365 million registered in the same period last year, despite 11 percent higher revenues at $1.194 billion versus $1.075 billion year-on-year.
For the full year of 2024, net loss shrunk by 89 percent to $109 million from $1.01 billion in 2023.
2. Informatica Inc. (NYSE:INFA)
Informatica plummeted by 21.53 percent on Friday, the second day, ending the day down to $19.75 apiece after reporting mixed earnings performance last year.
In a statement, INFA saw net income in the past quarter fell 85 percent to $9.754 million from $64.261 million in the same period last year, while revenues dipped 3.8 percent to $428 million from $445 million year-on-year.
Despite lower net profit for the quarter, INFA swung to a net income of $9.93 million in full-year 2024, reversing a net loss of $125 million posted in 2023.
Revenues for the year also inched up by 2.8 percent to $1.64 billion from $1.59 billion year-on-year.
INFA is a leading enterprise in AI-powered cloud data management, bringing data and AI to life by empowering businesses to realize the transformative power of their most critical assets.
1. SoundHound AI Inc. (NASDAQ:SOUN)
SoundHound AI was hit heavily on Friday, losing 28.10 percent to finish at $10.97 apiece as investors disposed of positions in the company, mirroring Nvidia Corp.’s (NVDA) dump in its shares.
Last week, NVDA submitted a regulatory filing showing its ownership positions in various firms. The filing showed a 44-percent reduction in its ownership in British chipmaker Arm Holdings while exiting Serve Robotics and SOUN.
An analyst from Triple D Trading was quoted as saying that there is no stronger vote of confidence than NVDA investing in a company.
NVDA’s divestment in SOUN has raised investor concern over the future of its growth trajectory, particularly as it was once seen as a promising player in the AI industry.
While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for other AI stocks that are as promising as SOUN but that trade 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.
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