Why Informatica Inc. (INFA) Plunged Last Week?

We recently published a list of These Were Last Week’s 10 Worst Performers. In this article, we are going to take a look at where Informatica Inc. (NYSE:INFA) stands against other last week’s worst performers.

Ten companies posted double-digit declines last week amid a series of dismal earnings performance and outlook guidance that weighed down on investor sentiment, bucking an overall strength of Wall Street’s main indices on a week’s basis.

Over the past five trading days, the Dow Jones registered growth of 0.5 percent, the S&P 500 increased by 1.47 percent, and the tech-heavy Nasdaq rallied by 2.57 percent.

To come up with the list, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A business executive in a modern office looking over reports detailing artificial intelligence.

Informatica Inc. (NYSE:INFA)

Informatica Inc. (NYSE:INFA) saw its share prices decline by 22.3 percent last week, finishing at $19.75 on Friday versus the $25.45 week-on-week after posting dismal earnings performance last year.

In a statement, Informatica (NYSE:INFA) saw net income in the past quarter fall 85 percent to $9.754 million from $64.261 million in the same period last year, while revenues dipped 3.8 percent to $428 million from $445 million year-on-year.

Despite lower net profit for the quarter, the company swung to a net income of $9.93 million in full-year 2024, reversing a net loss of $125 million posted in 2023.

Revenues for the year also inched up by 2.8 percent from $1.59 billion year-on-year.

INFA is a leading enterprise in AI-powered cloud data management, bringing data and AI to life by empowering businesses to realize the transformative power of their most critical assets.

Overall, INFA ranks 4th on our list of other last week’s worst performers. While we acknowledge the potential of INFA 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. If you are looking for an AI stock that is more promising than INFA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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