These 10 Firms Were Last Week’s Biggest Losers

Ten companies fell significantly last week, mirroring a broader market downturn, as investors sold off positions following disappointing news and data that weighed heavily on market sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

In this article, we will look at the top 10 losers’ weekly performance and the reasons that dampened sentiment.

To come up with this week’s top decliners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A stock market data. Photo by AlphaTradeZone on Pexels

10. Affirm Holdings Inc. (NASDAQ:AFRM)

Shares of Affirm Holdings Inc. (AFRM) dropped by 11.47 percent over the past week as investors sold off positions while waiting on the sidelines for more concrete developments on the Federal Reserve’s stance on interest rates.

Affirm Holdings (AFRM), a financial technology company primarily known for its “Buy Now, Pay Later” services, has businesses involved in providing consumers with an alternative way to pay for purchases over time, typically in installment plans, without the high interest rates and fees often associated with traditional credit cards.

According to analysts, investors repositioned their portfolios ahead of the next Fed meeting. Assuming the Fed does not lower its rates in the next meeting, this would more likely hurt Affirm’s performance due to higher borrowing costs and reduced consumer spending which could then potentially weigh in on its performance.

9. Constellation Brands Inc. (NYSE:STZ)

Last week’s trading saw Constellation Brands’ (STZ) stock price drop by 16.98 percent to finish at $181.81 apiece versus the $219 registered last Friday after missing revenue targets.

The company in its recent earnings report reported flat year-on-year sales of $2.46 billion. Its non-Generally Accepted Accounting Principles (non-GAAP) profit of $3.25 per share also missed analyst expectations by 1.9 percent.

Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) also missed analyst estimates by 4.6 percent to $912.3 million.

Investor confidence was dampened further after its management lowered its full-year adjusted EPS guidance by 0.7 percent to $13.60 per share to reflect “reduced growth expectations for net sales and operating income.”

“We continue to face the subdued spend and value seeking behaviors that emerged among legal drinking age consumers in the second quarter,” the company said.