Why Yiren Digital Ltd. (YRD) Went Down On Thursday?

We recently published a list of Thursday’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where Yiren Digital Ltd. (NYSE:YRD) stands against other Thursday’s worst-performing stocks.

Wall Street’s main indices edged lower on Thursday, erasing gains from the previous trading day that was buoyed by the Federal Reserve’s decision to keep rates unchanged.

Among the major indices, the tech-heavy Nasdaq led the drop, losing 0.33 percent. The S&P 500 declined by 0.22 percent, while the Dow Jones dipped by 0.03 percent.

Ten companies, predominantly under the micro- and small-cap sectors also mirrored losses. In this article, we have identified Thursday’s 10 worst performers and detailed the reasons behind their gains.

We classify micro-cap companies as those between $50 million and $300 million in market capitalization and small-cap firms as those between $300 million and $2 billion in market capitalization.

A modern office lobby with displays about online consumer finance offerings.

Yiren Digital Ltd. (NYSE:YRD)

Shares of Yiren Digital fell by 20.44 percent on Thursday to end at $6.85 each as investors disposed of shares in the company following a dismal earnings performance last year.

In its latest earnings release, YRD said net income dropped by 42 percent to RMB331 million from RMB571 million in the same period a year earlier, while revenues increased by 13.9 percent to RMB1.452 billion from RMB1.274 billion.

Meanwhile, net income in full year 2024 decreased by 23.9 percent to RMB1.582 billion from RMB2.080 billion in 2023, while revenues increased by 18.5 percent to RMB5.805 billion from RMB4.895 billion.

For this year, the company said it expects to book revenues between RMB5.5 billion and RMB6.5 billion, coupled with a healthy net profit margin.

YRD is a financial technology services company based in China, providing both credit and wealth management services.

Overall, YRD ranks 8th on our list of Thursday’s worst-performing stocks. While we acknowledge the potential of YRD 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 YRD 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.