Wall Street’s main indices finished firmer on Friday, with all main indices settling in the green territory ahead of President-elect Donald Trump’s return to the White House.
Week-on-week, the Dow eked out a 3.81-percent gain, the S&P rallied 3.79 percent, while the Nasdaq increased by 3.84 percent.
Ten companies from diverse sectors, however, ended Friday weaker, posting notable declines versus the week prior. In this article, let’s look at which firms suffered a bloodbath and the reasons that dragged their performance.
For this week’s list, we only focused on companies with a market capitalization of at least $2 billion and a minimum trading volume of $5 million.
A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels
10. Fluence Energy Inc. (NASDAQ:FLNC)
Fluence Energy Inc. (NASDAQ:FLNC) dropped its share prices by 10.25 percent week-on-week to finish Friday’s trading at $14.44 apiece amid investor concerns about the Securities and Exchange Commission’s (SEC) ongoing investigation against the company over improper accounting practices.
The investigation stemmed from Blue Orca Capital’s claims in February 2024 alleging that Fluence Energy (NASDAQ:FLNC) artificially inflated 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’s (NASDAQ:FLNC) purported improvement over recent quarters is the product of accounting games that have materially inflated revenue growth and Adjusted Gross Margins, which we think helps to explain why Fluence is on its third CFO in just over two years.”
Law firm Hagens Berman initiated a probe into Fluence Energy’s (NASDAQ:FLNC) potential violations of the US securities laws and urged investors who suffered substantial losses to come forward.
9. Rocket Lab USA Inc. (NASDAQ:RKLB)
Shares of Rocket Lab USA Inc. (NASDAQ:RKLB) markedly dropped by 10.8 percent week-on-week to close at $24 apiece last Friday from the previous week’s $26.91 finish, as investors repositioned their portfolios amid what appears to be a tightening market competition in the space exploration industry.
This came after billionaire Jeff Bezos’ Blue Origin successfully launched its New Glenn rocket into orbit on Thursday, just a day after Elon Musk’s SpaceX launched its Starship rocket into the sky.
While SpaceX’s launch failed, Blue Origin’s launch success fueled investors’ concerns of an increasing market competition that can put pressure on small competitors like Rocket Lab.
For this year, Rocket Lab (NASDAQ:RKLB) is expected to debut its Neutron rocket, which it has been developing since 2021. At $50 million to $55 million per launch, Neutron is set to rake in revenues and profits that would pave the way for its growth.
8. Macy’s Inc. (NYSE:M)
Retail giant Macy’s Inc. (NYSE:M) suffered an 11.6-percent decline in its share prices to finish Friday’s trading at $13.99 versus the $15.84 close the week prior following news that it was closing 150 underperforming stores by 2026 and keeping only 350 stores in its portfolio.
For this year, around 66 stores are expected to shut down albeit the locations have not been disclosed.
Macy’s CEO Tony Spring said in a recent statement that closing stores is never easy, but the locations chosen were underproductive for its so-called Bold New Chapter strategy, which includes a shift to chasing wealthier shoppers with its higher-end brands including Bloomingdale’s and Bluemercury.
At its current valuation, Macy’s (NYSE:M) was already 2.4 percent shy of touching its 52-week low of $13.66.
7. Snap Inc. (NYSE:SNAP)
Snap Inc. (NYSE:SNAP) saw its share prices decline by 12.9 percent week-on-week to $10.86 last Friday versus the $12.47 the week prior 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 (NYSE: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 (NYSE:SNAP) is violating or is about to violate the law.”
6. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) saw its share prices drop by 13 percent to close at $16.6 on Friday versus the $19.09 finish week-on-week as investors sold off positions following a ceasefire between Israel and Hamas.
Shipping companies such as ZIM have long been benefiting from the geopolitical tensions between Israel and Palestine since they were forced to take the longer route around South Africa instead of using the Suez Canal. The longer route has led to higher shipping rates due to the added time and fuel costs.
With the ceasefire now in place, expectations brewed that the stabilization in the region would now result in reduced costs, thereby forcing shipping rates to go down as well, thus lowering profits for the company.
5. GameStop Corp. (NYSE:GME)
Shares of GameStop Corp. (NYSE:GME) fell by 14.8 percent on Friday to close at $27.51 versus the $32.31 week-on-week amid reports that it was closing stores in the US, often with little to no warning. According to reports, the closure announcements were reported by employees on their social media platforms.
Since 2020 alone, GameStop (NYSE:GME) has been shutting down more than 700 stores as the COVID-19 pandemic heavily weighed on its profits. This was further aggravated by the continued rise in the digital age particularly online sales, and video game makers resorting to digital-only access to games.
This year alone, GameStop (NYSE:GME) reportedly will close dozens of stores across Texas, and it is uncertain whether other states will see similar store closures.
GameStop (NYSE:GME) is a retailer that sells video games, consumer electronics, and collectibles, with stores across the US, Canada, Australia, New Zealand, and Europe.
4. Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. (NASDAQ:PLUG) dropped its share prices by 15 percent last Friday to close at $2.44 apiece versus the $2.87 week-on-week.
Earlier this year, Plug Power (NASDAQ:PLUG) was not spared from a broader market decline over fears that President-elect Donald Trump may declare a national economic emergency to push through his tariff policies.
The statement made investors more cautious and lowered valuations, as Plug Power’s (NASDAQ:PLUG) business could also face challenges from the tariffs.
Taxes aside, traders discounted news 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, due to ongoing concerns about a demand problem in hydrogen projects.
3. Viking Therapeutics Inc. (NASDAQ:VKTX)
Despite booking a 0.28-percent gain in Friday’s trading, Viking Therapeutics Inc.’s (NASDAQ:VKTX) week-on-week share price markedly fell by 15.08 percent as investor sentiment was dampened by news of the US government’s potential price negotiations with drugmakers over what they deemed were overpriced drugs.
Last week, the US government still under the Biden administration added 15 prescription drugs to the list of medications that Medicare will negotiate prices on. Albeit no drug manufactured by Viking Therapeutics (NASDAQ:VKTX) has been named on the list, overall cautious sentiment about drug pricing regulations created a ripple effect across the sector over fears that price negotiations could impact future revenues, especially for high-cost therapies.
Viking Therapeutics (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on the development of novel first-in-class or best-in-class therapies for the treatment of metabolic and endocrine disorders, with three compounds currently in clinical trials.
2. Moderna Inc. (NASDAQ:MRNA)
Shares of Moderna Inc. (NASDAQ:MRNA) nosedived by 19 percent week-on-week to finish Friday’s trading at $34.06 versus the $42.25 close a week prior after projecting a steep decline in its 2025 revenues to between $1.5 billion to $2.5 billion as compared with $3.1 billion in 2024 and $19 billion at the peak of the Covid-19 pandemic.
The lower earnings projection came on the heels of lower vaccine demand for COVID-19 vaccines and slow adoption of its respiratory syncytial virus (RSV) shot, forcing Moderna to cut costs.
Moderna (NASDAQ:MRNA) CEO Stéphane Bancel said that the vaccine maker aims to reduce 2025 cash costs by $1 billion with a plan for an additional $500 million in 2026. It expects to end 2025 with cash and investments of about $6 billion.
The company is also betting on new products to help accelerate growth. It has filed an application with the US FDA for the approval of its combination vaccine to protect against COVID-19 and influenza.
1. FTAI Aviation Ltd. (NASDAQ:FTAI)
FTAI Aviation Ltd. (NASDAQ:FTAI) plunged by 35.4 percent week-on-week to close at $112.38 on Friday versus the $174.02 booked a week prior as investor sentiment was weighed down by news that it was being investigated for allegedly manipulating its financials.
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, several shareholder law firms initiated their own investigations into FTAI Aviation’s (NASDAQ:FTAI) financial reporting practices.
FTAI Aviation Ltd. (NASDAQ:FTAI) is a company engaged in aftermarket power and maintenance for the most widely used commercial jet engines.
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Disclosure: None. This article is originally published at Insider Monkey.
