Why Arbor Realty Trust, Inc. (ABR) Crashed on Friday

We recently compiled a list of the 10 Stocks Record Biggest Double-Digit Drop on Friday. In this article, we are going to take a look at where Arbor Realty Trust, Inc. (NYSE:ABR) stands against the other stocks.

The stock market ended the trading week in a bloodbath, with major indices registering losses amid concerns over a slowing economy and sticky inflation.

The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.

Ten stocks mirrored a broader market decline, posting double-digit losses, with sentiment for most of the companies dampened by dismal earnings performance.

To come up with Friday’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Rows of neatly arranged, multi-family homes, symbolizing the company’s large-scale investing opportunities.

Arbor Realty Trust, Inc. (NYSE:ABR)

Arbor Realty Trust, Inc. (NYSE:ABR) saw its share prices decline by 13.29 percent on Friday to finish at $12 apiece as investor sentiment was dampened by expectations of shrinking earnings amid challenges of higher interest rates.

On Friday, Arbor Realty Trust, Inc. (NYSE:ABR) announced that its net income attributable to shareholders fell by 34.7 percent to $59.8 million during the fourth quarter last year from $91.6 million registered in the same period a year earlier. Meanwhile, net income for the full year decreased by 29 percent to $283 million from $400 million in 2023.

Earnings per share for the quarter settled at 40 cents, while full-year EPS stood at $1.74.

For this year, Arbor Realty Trust, Inc. (NYSE:ABR) expects a number of key factors to challenge the company, including high interest rates that could impact earnings, volatility in the commercial real estate lending market, higher competition in bridge lending, loan risks, and ongoing legal expenses related to short seller reports.

Overall ABR ranks 9th on our list of Friday’s biggest losers. While we acknowledge the potential of ABR 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 an AI stock that is as promising as ABR 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.