Why Box, Inc. (BOX) Went Down on Wednesday

We recently compiled a list of the 10 Stocks Defy Market Optimism as Investor Caution Lingers. In this article, we are going to take a look at where Box, Inc. (NYSE:BOX) stands against the other stocks.

The stock market stood its ground on Wednesday, with all major indices eking out gains as President Donald Trump softened trade restrictions for three large automakers, reviving hopes that the trade war may not be as bad as it seemed.

The Dow Jones grew 1.14 percent, the S&P 500 rose by 1.12 percent, while the tech-heavy Nasdaq jumped 1.46 percent.

On Wednesday, the White House granted three large automakers a one-month exemption from tariffs after a call with the president, sending their share prices higher during the session.

Ten firms, however, bucked an overall optimism, recording modest declines during the past trading session. In this article, we have listed the 10 names and detailed the reasons behind their performance.

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

A close-up of a laptop with a screen revealing the 25 languages supported by the company’s cloud content management platform.

Box, Inc. (NYSE:BOX)

Box, Inc. (NYSE:BOX) saw its share prices decline by 3.23 percent on Wednesday to finish at $32.39 each as investor sentiment was dragged down by a possible pressure on foreign exchange that could impact its profit.

In a conference call, Box, Inc. (NYSE:BOX) Chief Executive Officer Aaron Levie said that the company’s billings were affected by a much larger-than-expected headwind from unfavorable currency exchange rates.

Box, Inc. (NYSE:BOX) said that billings, or receivables from its customers, rose by 5 percent in the last quarter of 2024 to $398.6 million.

In the same quarter, Box, Inc. (NYSE:BOX) saw net profit almost double to $194 million from $99.2 million in the same period a year earlier.

The company also underscored its ongoing investments in Artificial Intelligence, saying that BOX is “entering one of the biggest shifts in business, driven by AI.”

Overall BOX ranks 6th on our list of Wednesday’s worst performers. While we acknowledge the potential of BOX 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 time frame. If you are looking for an AI stock that is more promising than BOX but 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.