Why UBS Group AG (UBS) Went Down on Tuesday

We recently compiled a list of the 10 Firms Fall Amid Disappointing Earnings Performance. In this article, we are going to take a look at where UBS Group AG (NYSE:UBS) stands against the other stocks.

Wall Street’s main indices all finished in the green territory on Tuesday, buoyed by news that the US is set to temporarily delay taxes levied on select goods from Canada and Mexico to make way for a potential negotiation.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

Meanwhile, 10 companies bucked an overall positive market sentiment, leading declines mostly due to disappointing earnings performance in the past quarter. This article details the reasons behind their poor performance.

To come up with Tuesday’s biggest losers, we only considered the companies with $2 billion in market capitalization and $5 million in daily trading volume.

A close-up picture of financial documents and computers in a modern office setting.

UBS Group AG (NYSE:UBS)

Investment banking firm UBS Group dropped for the sixth consecutive day on Tuesday, losing another 7.24 percent to end at $32.41 each as investor sentiment was dragged down by news that it laid off 10,000 jobs since taking over Credit Suisse in 2023. Investors discounted news of higher profits in the fourth quarter of 2024.

On Tuesday, UBS Group said its global headcount as of the end of 2024 stood at 108,648, down from 119,100 at the end of June 2023 when the group bought Credit Suisse.

The Swiss-based bank made the deepest job cuts following the takeover, initially slashing the workforce by 3,000 in the third quarter of the year.

According to a report by Bloomberg, several hundreds of employees were given notice in recent weeks.

In the fourth quarter of 2024, UBS Group said it achieved a net income of $770 million,  smashing the $483 million analyst estimates. The lender also announced a share buyback program worth $3 billion.

Overall UBS ranks 6th on our list of Tuesday’s biggest losers. While we acknowledge the potential of UBS 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 timeframe. If you are looking for an AI stock that is more promising than UBS 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.