Why These 15 Software Stocks Are Plunging In 2025

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13. Palladyne AI Corp (NASDAQ:PDYN)

Number of Hedge Fund Holders In Q4 2024: N/A

Palladyne AI Corp (NASDAQ:PDYN) makes AI and machine learning software for robotic systems.

The stock is down significantly so far in 2025 as volatility in small-cap tech stocks has intensified, and investors have rotated away from high-growth, speculative names like PDYN toward more stable assets.

Plus, the company’s revenue, while up 27% year-over-year in 2024, remains modest at $7.79 million.

Investor sentiment has also shifted because of Palladyne’s unproven commercial traction. The company launched its Palladyne IQ and Palladyne Pilot products for industrial robots and drones, with customer trials slated for 2025.

However, without significant contracts or revenue growth reported yet, uncertainty persists. This lack of tangible progress has fueled profit-taking after last year’s rally.

The consensus price target of $15 implies 103.8% upside.

PDYN stock is down 39.93% year-to-date.

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