Why OneStream Inc. (OS) Crashed on Wednesday

We recently compiled a list of the Heavy Selling Drags Share Prices of These 10 Firms. In this article, we are going to take a look at where OneStream Inc. (NASDAQ:OS) stands against the other stocks.

Wall Street’s major indices finished mixed on Wednesday, though generally pessimistic, as investor sentiment was dampened by higher-than-expected consumer price data which fueled concerns of a potential inflation rebound.

The Dow Jones and S&P 500 declined by 0.50 percent and 0.27 percent, respectively. Only Nasdaq posted gains, albeit a marginal 0.03 percent.

Among Wednesday’s losers, 10 companies were the worst performers, primarily due to disappointing earnings results, dismal outlook guidance, and downgraded ratings, among others. In this article, we have detailed the specific reasons behind their lagging performance.

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

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OneStream Inc. (NASDAQ:OS)

OneStream Inc. nosedived by 19.91 percent on Wednesday to close at $24.17 per share following a downgraded outlook from an investment banking firm.

On Wednesday, JPMorgan downgraded its outlook for OS to “neutral” from “overweight” and cut its price target to $26 from $30 following the release of OS’ earnings results.

In a statement, JPMorgan said OS’ high gross retention rates as well as its capability to replace other specialized products in the market bodes well for the company’s business performance.

“However, in recent weeks we have published cautious data points relating to OneStream, and its Q4 results provide confirmation of deal slippage, which causes us to think the stock may remain range-bound in the $20s until some overhangs can clear up,” JPMorgan said.

Overall OS ranks 1st on our list of Wednesday’s top losers. While we acknowledge the potential of OS 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 more promising than OS 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.