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.
8. Intuitive Machines Inc. (NASDAQ:LUNR)
Shares of Intuitive Machines (LUNR) saw its share prices drop by 7.65 percent last week to $17.87 from the $19.35 posted a week prior as investors repositioned their portfolios ahead of the company’s scheduled payload launch.
Intuitive Machines (LUNR), a company engaged in space exploration, is slated to launch its next payload next month, and analysts said investors may have turned cautious about the potential launching, particularly any financial implications if the space exploration activity does not go as planned.
In other news, Intuitive Machines (LUNR) recently successfully integrated Nokia’s Lunar Surface Communication System into the IM-2 mission lander, named Athena, paving the way for the first cellular network on the moon.
After months of testing and validation with Nokia Bell Labs, Intuitive Machines (LUNR) engineers installed the LSCS network in a box to one of Athena’s upper carbon-composite panels. Multiple precautions were taken during the installation to help ensure that the network will safely make the 239,000-mile journey to the Moon, survive the stresses of take-off and landing, and operate optimally on the lunar surface.
7. Edison International (NYSE:EIX)
Power distribution giant Edison International (EIX) dropped its share prices by 19.03 percent last week to $65 from the $80.28 recorded a week prior amid the ongoing Los Angeles wildfire that has resulted in dozens of deaths and billions worth of damages.
It doesn’t help that the company is currently under public scrutiny due to a potential connection to the wildfire, after discovering a downed conductor at a tower near the area where the Hurst Fire broke out on Tuesday evening.
Edison, however, said it was uncertain whether the damage occurred before or after the fire.
At present, Edison said some areas may continue to be de-energized in the coming weeks for public safety and prevent any further wildfire conditions.
Edison International (EIX) is one of the largest electric utility holding companies in the U.S., focused on providing clean and reliable energy and energy services through its independent companies.
6. Archer Aviation Inc. (NYSE:ACHR)
Archer Aviation (ACHR) saw its share prices tumble by 7.24 percent over the past five trading days, ending last week at $8.97 apiece versus the $9.67 week-on-week after earning a downgraded rating from JP Morgan.
In a report released on Friday, JP Morgan downgraded Archer Aviation’s rating from an “overweight” rating to “neutral,” reflecting a more conservative outlook, noting that the market was already pricing in Archer Aviation’s achievements that have yet to materialize.
According to JPMorgan, Archer Aviation’s (ACHR) current trading levels indicate that it has already obtained full certification for its electric vertical takeoff and landing (eVTOL) aircraft, a milestone that it has yet to achieve.
The certification was crucial to the company’s operational success of its air taxi services.
5. Mobileye Global Inc. (NASDAQ:MBLY)
Shares of Mobileye Global (MBLY) dived by 22.35 percent last week to $15.65 versus the $20.16 finish the week prior as investor sentiment was weighed down by a lacking presentation at the recently concluded Consumer Electronics Show (CES) 2025 in Las Vegas.
An analyst from Bloomberg Intelligence pointed out that Mobileye CEO Amnon Shashua’s address at the CES show lacked updates on the company’s commercial wins, likely disappointing investors after it unveiled promising driving assistance technology at its capital markets day in December.
Last year, the company’s stock price lost more than half of its value after sales came under pressure from customers carrying too much inventory amid a broader industry slowdown in self-driving vehicles across China and Europe.
4. Bitdeer Technologies Group (NASDAQ:BTDR)
Bitdeer Technologies (BTDR) fell by more than 19 percent over the past five trading days, ending Friday at $18.5 versus the $22.9 finish a week prior.
Bitdeer, a $4-billion heavyweight in Bitcoin mining, dropped in line with the decline in the price of Bitcoin, which as of Friday was down by 1.67 percent. Bitcoin’s five-day trading performance also marked a 1.07 percent week-on-week.
Despite the decline, analysts remained bullish on the company, with Roth MKM maintaining a buy rating for the company and increasing its price target to $29 citing progress in high-performance computing and Artificial Intelligence, and rapid traction of its SEALMINER platform.
Bitdeer (BTDR) earlier signaled an aggressive growth plan over the next few years. Just recently, it raised as much as $1 billion from a fundraising program, with proceeds to be used for its expansion plans.
3. SoundHound AI (NASDAQ:SOUN)
SoundHound AI (SOUN) saw its share prices last week tumble by 28.66 percent to finish at $14.09 apiece versus the $19.75 registered in the week prior, with analysts pointing to hotter-than-expected labor market data as having weighed on investor sentiment.
Economists earlier expected that the Job Openings and Labour Turnover Survey (JOLTS) for November would decrease to 7.7 million from the 7.8 million reported in October, yet November’s actual data settled at 8.1 million jobs.
The increase fueled worries about higher inflation coupled with higher Treasury yields.
In addition, President-elect Donald Trump’s earlier statement that he would fast-track his tariff strategy by declaring a potential national emergency added fuel to the fire.
As SoundHound (SOUN) is a growth stock, it is more sensitive to macroeconomic shifts that could lead to a decline in share prices.
2. IonQ Inc. (NYSE:IONQ)
Despite booking a 6.88-percent gain on Friday versus Wednesday’s trading, shares of IonQ (IONQ) on a week-on-week basis marked a 25.51-percent decline, ending Friday at $32.33 versus the $43.4 registered a week prior.
The company suffered a significant speed bump after Nvidia Corp. CEO Jensen Huang announced during the recently concluded CES show that the practical use of quantum computers may not be until 15 to 30 years from now.
But 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.
IONQ, along with sectors that stand to benefit from the booming AI such as quantum computing and nuclear energy, similarly lost portions of their valuations.
1. Rigetti Computing Inc. (NASDAQ:RGTI)
Rigetti Computing (RGTI) fell by more than 50 percent in just a week, ending Friday’s trading at $8.93 versus the $18.84 registered week-on-week along with a broader sector downturn, as investors sold off positions following Nvidia Corp. chief Jensen Huang’s statement that the practical use of quantum computers are still 15 to 30 years away.
The timeline left little room for optimism among investors, who had hoped for quicker breakthroughs.
In addition, analysts recently cautioned investors about the risks of speculating in sectors such as nuclear and quantum computing, suggesting it could take a long time before these fields generate meaningful returns.
Other analysts also viewed Rigetti Computing (RGTI) as overvalued, trading at an EV-to-revenues ratio of 455 and a price-to-sales ratio of 242 currently.
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 more promising than 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.
