Why Under Armour Inc. (UAA) Went Down On Friday?

We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where Under Armour Inc. (NYSE:UAA) stands against other Friday’s worst performing stocks.

Wall Street’s main indices bounced back on Friday, erasing the entire week’s losses, as investor hopes were fueled by news that no government shutdown is happening.

The tech-heavy Nasdaq jumped the highest on Friday, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, on the other hand, bucked an overall market optimism, posting modest losses during the day.

In this article, we have named the day’s worst performers and detailed the reasons behind their drop.

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

Copyright: halfpoint / 123RF Stock Photo

Under Armour Inc. (NYSE:UAA)

Under Armour dropped its share prices by 4.96 percent on Friday, a third straight day, to close at $6.7 apiece as investors sold off positions following a downgraded rating.

On Wednesday, StockNews lowered its outlook for the company to “sell” from “hold” previously.

With the recent sell-off, investors appeared to have exercised caution from the ongoing trade war between the United States and China and how it would impact the business, despite its CEO saying that China’s tariffs on US goods have little impact on the company due to its products being sourced in China.

In its latest earnings presentation, UAA’s net income for the quarter ending December 2024 fell by 99 percent to $1.2 million from the $110.75 million registered in the same period a year ago, as net revenues dropped 6 percent to $1.4 billion versus $1.49 billion year-on-year.

In the first nine months alone, UAA swung to a net loss of $133.8 million versus a $225-million net profit in the same period year-on-year as net revenues declined by 8.9 percent to $3.98 billion from $4.37 billion.

Overall, UAA ranks 2nd on our list of Friday’s worst performing stocks. While we acknowledge the potential of UAA 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 time frame. If you are looking for an AI stock that is as promising as UAA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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