Why FatPipe Inc. (FATN) Went Down On Thursday?

We recently published a list of 10 Stocks Fall Behind Amid Market Optimism. In this article, we are going to take a look at where FatPipe Inc. (NASDAQ:FATN) stands against other stocks that fall behind amid market optimism.

Wall Street’s main indices rebounded from hefty losses on Wednesday after President Donald Trump announced that the US will pause the imposition of higher tariffs on 75 countries for 90 days.

In a post on Truth Social, Trump said that more than 75 countries have called to negotiate and have not retaliated in any way.

“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he noted.

Following the announcement, the Dow Jones jumped by 7.87 percent, the S&P 500 surged by 9.52 percent, and the tech-heavy Nasdaq soared by 12.16 percent.

Despite the overall market optimism, 10 companies, predominantly in the biopharmaceutical sector, registered losses amid the lack of fresh developments to spark buying appetite.

In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with over $1 million in trading volume.

A business executive using a laptop to manage a secure enterprise network.

FatPipe Inc. (NASDAQ:FATN)

Newly listed FatPipe Inc. fell by 40.38 percent on Wednesday to end at $7.75 apiece as investors resorted to profit-taking following a surge in its first day as a public company.

FATN debuted on the stock market on Tuesday, opening at $6.50 apiece and ending higher at $13 each. However, investor optimism was short-lived, as traders sold off positions to book profits.

FATN initially planned to offer more than 696,000 shares at a price of $5.75 apiece. Following the IPO, the company expected to generate some $4 million in fresh proceeds.

FATN said it also granted the underwriters a 45-day over-allotment option to purchase up to an additional 104,348 shares of common stock at the public offering price, less underwriting discounts.

FATN is a company engaged in enterprise-class, application-aware, secure software-defined wide area network solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies.

Overall, FATN ranks 1st on our list of stocks that fall behind amid market optimism. While we acknowledge the potential of FATN 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FATN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.