Ten companies fell sharply on Wednesday, mirroring a broader market pessimism, as investors soured on growing concerns about the AI industry.
On Wall Street, the tech-heavy Nasdaq led losses, down 1.81 percent, followed by the S&P 500, declining 1.16 percent, and the Dow Jones, dropping 0.47 percent.
In this article, we focus on the 10 big names with the largest losses and break down the reasons behind their drop.
To come up with the list, we focused on the stocks with a $2 billion market capitalization and 5 million shares in trading volume.
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
10. NuScale Power Corp. (NYSE:SMR)
NuScale Power extended its losing streak to a fourth consecutive day on Wednesday, shedding 8.12 percent to close at $15.73 apiece as investors unloaded portfolios on news that it was increasing its authorized capital stock by nearly double.
In a regulatory filing on the same day, NuScale Power Corp. (NYSE:SMR) said that it sought the approval of the Secretary of State of the State of Delaware for its plan to raise its authorized capital stock to 662 million shares with a par value of $0.0001 apiece, from 332 million at present.
The drop, on the other hand, was primarily dragged by concerns about the potential impact of new share issuance on NuScale Power Corp.’s (NYSE:SMR) current shareholders.
The plan has already been approved by the Board of Directors during a special meeting on Tuesday, December 16.
NuScale Power Corp. (NYSE:SMR) also mirrored a broader market pessimism, as investors disposed of shares in companies riding the wave, including energy firms.
In the third quarter of the year, NuScale Power Corp. (NYSE:SMR) expanded its net loss attributable to shareholders by 1,470 percent to $273 million from $17 million in the same period last year.
Revenues, on the other hand, increased by 1,635 percent to $8.2 million from only $475,000 year-on-year.
9. Ondas Holdings Inc. (NASDAQ:ONDS)
Ondas dropped its share prices by 8.90 percent on Wednesday to finish at $7.37 apiece, mimicking a broader market pessimism dragged by increasing fears over heavy spending on AI, while investors continued to take profits ahead of the Christmas holiday.
The drop came despite developments in Ondas Holdings Inc. (NASDAQ:ONDS), which had completed its acquisition of Roboteam, effectively expanding its operations in combat-proven unmanned ground vehicle platforms and complementing its existing aerial autonomy, counter-UAS, and intelligence capabilities.
Once successfully integrated, Roboteam would operate under Ondas Holdings Inc.’s (NASDAQ:ONDS) business unit, Ondas Autonomous Systems.
In other news, Ondas Holdings Inc. (NASDAQ:ONDS) also joined forces with Heidelberger Druckmaschinen AG—a company engaged in technology and mechanical engineering—to jointly examine the establishment of European manufacturing and integration capacity across the listed firm’s autonomous systems portfolio.
The two parties signed a memorandum of understanding on Wednesday in support of Germany and Israel’s celebration of their 60th year of diplomatic relations.
Ondas Holdings Inc. (NASDAQ:ONDS) said that its partnership would focus on counter-UAV (C-UAV) solutions and Intelligence, Surveillance and Reconnaissance (ISR) systems.
“Through this collaboration, we gain leading expertise in the detection and defence against drones, while Ondas gains an industrialisation partner in Europe that is ready to start immediately. This will enable European security authorities to be supplied at short notice and critical infrastructure in Europe to be protected against drone attacks. A true win-win situation in a field of technology that is currently as important as hardly any other,” said German Federal Minister for Economic Affairs and Energy Katherina Reiche.
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