Why New Fortress Energy Inc. (NFE) Crashed Last Week

We recently compiled a list of the These 10 Firms Were Last Week’s Worst Performers. In this article, we are going to take a look at where New Fortress Energy Inc. (NASDAQ:NFE) stands against the other stocks.

Volatile trading persisted on the stock market last week as investors scrambled to react to a flurry of positive and negative news that sparked both buying and selling positions.

On Friday alone, all Wall Street main indices fell into the red territory, with trading dampened mainly by tariff threats and expectations of a higher inflation rate in the US.

Ten companies under mixed sectors also mirrored the decline, with each booking double-digit slumps. This article details which 10 companies suffered the most last week and what specifically caused investor pessimism.

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

A cutaway view of a modern energy infrastructure and its power generation facilities.

New Fortress Energy Inc. (NASDAQ:NFE)

Shares of New Fortress Energy Inc. fell 15 percent last week to end Friday’s trading at $12.26 from January 31’s $15 finish as investors continued to sell off positions over twin news that it was being investigated by a shareholder law firm over revenue projection issues, while also earning a credit rating downgrade from an investment bank.

On Thursday, law firm Johnson Fistel LLP announced that it launched an investigation into NFE following a class action lawsuit over claims that it created the false impression of possessing reliable information on its projected revenue growth outlook, while simultaneously downplaying the risks associated with its Fast Liquefied Natural Gas projects.

The company also earned a pessimistic outlook from S&P Global Ratings on its credit rating, as it downgraded NFE from “B+” to “B” due to concerns about its liquidity and high leverage.

S&P said the downgrade also reflected its outlook on the company’s financial health.

Overall NFE ranks 8th on our list of last week’s worst performers. While we acknowledge the potential of NFE 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 NFE 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.