We recently published a list of 10 Stocks Drop The Most Amid Investor Caution. In this article, we are going to take a look at where Futu Holdings Limited (NASDAQ:FUTU) stands against other stocks that drop the most amid investor caution.
Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.
The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.
Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.
To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
Note that the companies we covered in-depth last Friday have been excluded from the list.
A brokerage employee huddled with a group of retirees discussing retirement portfolios.
Futu Holdings Limited (NASDAQ:FUTU)
Futu Holdings Limited (NASDAQ:FUTU) fell by 9.16 percent on Monday to close at $110.28 apiece, in line with its Chinese peers, following a new memorandum from the White House encouraging foreign investments while singling out China over threats it poses to US national security interests.
President Donald Trump issued the memorandum on Friday which directed the Committee on Foreign Investment in the United States (CFIUS) to impose stricter regulations on Chinese investments in key strategic sectors.
According to the memo, China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security.”
Under the directive, the US will establish new rules to curb “the exploitation of its capital, technology, and knowledge by foreign adversaries such as China to ensure that only those investments that serve American interests are allowed.”
Futu, a financial technology company offering digital financial services, operates in seven key regions namely the US, Hong Kong, Singapore, Australia, Japan, Canada, and Malaysia.
Overall, FUTU ranks 5th on our list of stocks that drop the most amid investor caution. While we acknowledge the potential of FUTU 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 FUTU 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.