Why Venture Global Inc. (VG) 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 Venture Global Inc. (NYSE:VG) 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.

Close-up of a liquefied natural gas terminal expelling plumes of smoke.

Venture Global Inc. (NYSE:VG)

Venture Global Inc. dropped its share prices for a third day, losing 7.70 percent to end at $15.23 each as investor sentiment was further dampened by a shareholder law firm’s investigation into the company for possible violations of federal securities laws.

On Wednesday, law company Levi & Korsinsky announced the commencement of its probe into VG following TotalEnergies CEO Patrick Pouyanne’s statement that he was approached by VG to see if the company would be interested in a long-term supply contract for liquefied natural gas from the Calcasieu Pass terminal in Louisiana.

However, Pouyanne announced he rejected the offer “because of what they are doing,” underscoring his lack of trust.

VG is facing legal challenges from huge clients namely BP and Shell for the delays in supply contracts as it commissions its projects.

Meanwhile, VG said it was surprised by Pouyanne’s comments, but said that they continue to honor its contracts and execute the construction of its facilities safely and at a record pace.

Overall VG ranks 6th on our list of Wednesday’s top losers. While we acknowledge the potential of VG 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 VG 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.