Ten stocks fell sharply on Tuesday, mirroring Wall Street indices’ lackluster performance, as investors digested a flurry of industry developments, including the steep drop in prices of precious metals.
Meanwhile, Wall Street’s three major indices finished mixed, with the Dow Jones the only gainer, up 0.47 percent. The S&P 500 finished flat, while the tech-heavy Nasdaq dropped by 0.16 percent.
In this article, we highlight the names of the 10 worst-performing stocks on Tuesday and detail the reasons behind their drop.
To come up with the list, we picked exclusively those with a $2 billion market capitalization and 5 million shares in trading volume.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
10. Harmony Gold Mining Co. Ltd. (NYSE:HMY)
Harmony Gold tumbled by 10.99 percent on Tuesday to close at $17.98 apiece as investors sold off positions amid gold and silver’s steepest drop in years.
In intra-day trading, gold and silver fell by 6.3 percent and 8.7 percent, respectively—their biggest single drop since 2013, as investors turned took profits from record highs.
Prices, however, pared losses toward the end of the session, but spilled over to mining stocks, including Harmony Gold Mining Co. Ltd. (NYSE:HMY), Anglogold Ashanti and Hecla Mining, among others.
In other developments, gold investors will be closely watching out for the US central bank’s Federal Open Market Committee meeting on Wednesday next week, highly anticipating an interest rate cut.
Lower rates typically buoy prices of precious metals as it weakens the US dollar, making it cheaper for foreign investors to acquire gold.
In recent developments, Harmony Gold Mining Co. Ltd. (NYSE:HMY), through its Australian subsidiary Harmony Gold (Australia) Pty Ltd., successfully acquired MAC Copper for AU$1.08 billion.
9. Anglogold Ashanti PLC (NYSE:AU)
Anglogold fell by 11.3 percent on Tuesday to close at $66.78 apiece as investors unloaded portfolios in gold mining stocks following the precious metal’s biggest single drop in years.
The stock declined alongside its counterparts, mirroring the steep drop in prices of gold and silver, which nosedived by 6.3 percent and 8.7 percent, respectively during the day, before trimming losses toward the end of the session.
Investors appeared to have taken profits following the precious metals’ soar to new highs over the past weeks.
In other developments, BNAmericas reported that Colombia’s National Mining Agency denied a request by Anglogold Ashanti PLC (NYSE:AU) for the suspension of obligations related to the mining title of its $1.4 billion Quebradona copper project.
The agency was quoted as saying that the Anglogold Ashanti PLC’s (NYSE:AU) request was “legally contradictory to grant opposing requests simultaneously or consecutively” since the mining firm initially requested a suspension of contractual obligations, followed by an extension of the exploration phase.
It added that Anglogold Ashanti PLC (NYSE:AU) did not present sufficient evidence to support exceptional circumstances of force majeure as cited in its application.
The Quebradona project is wholly owned and managed by the company and is considered an attractive long-life, high-grade, low-cost project with the potential to add copper production to its portfolio.
8. Hecla Mining Company (NYSE:HL)
Hecla Mining dropped its share prices by 11.47 percent on Tuesday to finish at $12.81 apiece as investors unloaded portfolios in mining stocks after silver and gold suffered their steepest drop in years.
During the session, spot prices of silver— Hecla Mining Company’s (NYSE:HL) business focus—fell by as much as 8 percent before trimming losses to end the day just down by 1.20 percent at $48.13 per troy ounce.
The decline was primarily due to profit-taking amid the precious metals’ surge to record highs in the past few weeks.
On Wednesday next week, mining investors will be closely watching out for the result of the US central bank’s Federal Open Market Committee meeting for the month, highly anticipating an interest rate cut.
Lower rates typically buoy prices of precious metals as it weakens the US dollar, making it cheaper for foreign investors to acquire silver and gold.
In other news, Hecla Mining Company (NYSE:HL) earlier this month officially secured the green light of the US Forest Servie for its copper-silver Libby Exploration Project in Montana.
As of December 31, 2024, the Libby Project boasted an Inferred Resource of 112.2 million tons grading 0.7 percent copper and 1.6 ounces per ton silver, for contained metal of over 1.5 billion pounds of copper and 183 million ounces of silver.
7. Navitas Semiconductor Corp. (NASDAQ:NVTS)
Navitas dropped its share prices by 12.11 percent on Tuesday to close at $15.03 apiece as investors resorted to profit-taking after the previous days’ new record high.
In other news, Navitas Semiconductor Corp. (NASDAQ:NVTS) is scheduled to release the results of its third quarter financial and operating highlights after market close on November 3, to be followed by a conference call to elaborate on the results.
Last week, optimism for the company was buoyed by the launch of a new chip capable of supporting Nvidia Corp.’s 800-volt direct current (VDC) system for the next-generation artificial intelligence (AI).
Called GaNFast and GeneSic, Navitas Semiconductor Corp. (NASDAQ:NVTS) said that both technologies are capable of providing unprecedented levels of power density, efficiency, and scalability for the 800-VDC system.
“[With] the industry [moving] rapidly toward megawatt-scale AI computing platforms, the need for more efficient, scalable, and reliable power delivery becomes absolutely critical. The transition … to 800 VDC is not just evolutionary, it’s transformational,” said Navitas Semiconductor Corp. (NASDAQ:NVTS) President and CEO Chris Allexandre.
6. Oklo Inc. (NYSE:OKLO)
Oklo fell by 12.33 percent on Tuesday to finish at $139.44 apiece as investors mirrored an institutional investors’ unloading of an $8.49 million stake in the company.
In a regulatory filing on Monday, Cathie Wood’s ARK Autonomous Tech ETF announced that it sold 53,353 shares in Oklo Inc. (NYSE:OKLO), having soared to a record high last week.
Additionally, analysts said the drop can be attributed to profit-taking, with Oklo Inc. (NYSE:OKLO) already at a whopping 538.17 percent gain year-to-date.
In other news, Oklo Inc. (NYSE:OKLO) last week clinched a strategic partnership with Newcleo and Blykalla for the development of advanced fuel fabrication and manufacturing infrastructure in the United States.
According to the Sam Altman-backed company, Newcleo would invest up to $2 billion in the project, while Blykalla would co-invest and procure fuel related services for the same projects.
“By channeling large-scale transatlantic investments into the American advanced nuclear industry, the partnership exemplifies Newcleo’s and Blykalla’s interest in the US market and supports the domestic expansion of Oklo’s fuel and fast-reactor technologies. Partnerships like this show how allied collaboration can strengthen energy innovation, leadership, and dominance in the United States,” Oklo Inc. (NYSE:OKLO) said.
5. NuScale Power Corp. (NYSE:SMR)
NuScale extended its losing streak to a fourth straight day on Tuesday, shedding 13.21 percent to close at $38.37 apiece, as investor sentiment was dampened by a rating downgrade and news that its largest shareholder was looking to sell additional stake in the company.
In a market note, Citigroup gave NuScale Power Corp. (NYSE:SMR) a “sell” recommendation with a price target of $37.50 amid a flurry of negative catalysts, including Fluor Corp.’s sale of its own interest, alongside cutthroat competition, among others.
Citi said that the current share price currently reflects NuScale Power Corp.’s (NYSE:SMR) capability to build around 16 GW of reactors by 2040, while it forecasts total installation in the US to be at 56 GW. This means that optimism for such level of market share appears “too high,” especially as NuScale Power Corp. (NYSE:SMR) has yet to have any confirmed customer.
“We believe the market is giving too much credit for this deal, as the timeline likely will be longer than expected, and the capital needs could weigh heavily, especially since the deal is not guaranteed, [and the company] does not have material near-term customers to fall back on, making it reliant on its active projects unless new entrants emerge, which we view as unlikely,” Citi said.
4. Fermi Inc. (NASDAQ:FRMI)
Fermi fell to an all-time low on Tuesday, as investors continued to unload portfolios on concerns for energy stocks tied to the AI bubble.
In intra-day trading, Fermi Inc. (NASDAQ:FRMI) dropped to its lowest 52-week price of $21.26 before slightly recovering to end the day just down by 14.49 percent at $21.71 apiece.
A number of analysts posted concerns that the AI bubble could heavily impact energy stocks, with the sector jumping to record highs year-to-date.
An opinion piece on Wall Street Journal on Monday noted how people feared about technology companies being overpriced amid the AI frenzy, saying that many of those “are hugely profitable ones” which will keep chugging along even if AI boom fades.
“Not so in the energy sector,” it said.
Another analyst earlier this week believed that Fermi Inc. (NASDAQ:FRMI) is overpriced, having only $2 billion of paid-in capital, with shares issued at very cheap prices, yet already trading at $12 billion in market capitalization.
Fermi Inc. (NASDQ:FRMI) is a newly listed energy company which debuted on the stock market to cash in on the AI frenzy last October 1.
During its initial public offering, Fermi Inc. (NASDQ:FRMI) was able to raise $682 million in fresh funds covering 32.5 million shares at a price of $21 apiece.
3. USA Rare Earth, Inc. (NASDAQ:USAR)
USA Rare Earth fell by 15.38 percent on Tuesday to end at $26.73 apiece as investors unloaded portfolios while digesting the Unites States’ newly signed deal with Australia for the development of critical minerals in their countries.
On Monday, President Donald Trump announced that the US signed a mutual agreement with Australia to boost the production of rare earths and other critical minerals, in a bid to counter China’s dominance of the said markets.
Australian Prime Minister Anthony Albanese said that the deal would unlock $8.5 billion worth of “ready-to-go” projects and expand Australia’s mining and processing abilities.
Meanwhile, USA Rare Earth, Inc.’s (NASDAQ:USAR) price drop can also be attributed to profit-taking following a 14 percent surge the day prior, buoyed by William Blair’s optimistic coverage for its stock.
In a market note, William Blair gave an outperform rating on USA Rare Earth, Inc. (NASDAQ:USAR), alongside United States Antimony Corp., American Resources Corp., NioCorp Developments Ltd., and Royalty Management Holding Corp., on the belief that they were uniquely positioned to benefit from the surge in interest and investments in domestic rare earth production.
For USA Rare Earth, Inc. (NASDAQ:USAR) alone, William Blair highlighted the looming start of operations of a magnet facility that is expected to support its growth.
2. Coeur Mining, Inc. (NYSE:CDE)
Coeur Mining tumbled by 16.11 percent on Tuesday to close at $18.48 apiece, mimicking the drop in the overall sector after gold prices fell sharply during the day.
Coeur Mining, Inc. (NYSE:CDE) declined alongside its counterparts after gold and silver nosedived by 6.3 percent and 8.7 percent, respectively during the day, before trimming losses toward the end of the session.
Investors appeared to have taken profits following the precious metals’ soar to new highs over the past weeks.
In other developments, Coeur Mining, Inc. (NYSE:CDE) is scheduled to release the results of its third quarter earnings performance after market close next Wednesday, October 29. A conference call will be held to dive deep on the results.
The earnings date coincides with the Federal Reserve’s announcement of its decision on interest rates for the month, where a cut is highly anticipated by investors.
Lower rates typically buoy prices of precious metals as it weakens the US dollar, making it cheaper for foreign investors to acquire gold.
1. Cleveland-Cliffs Inc. (NYSE:CLF)
Cleveland-Cliffs nosedived by 17.24 percent on Tuesday to close at $13.39 apiece, as investors resorted to profit-taking while taking path from an investment firm’s “sell” recommendation.
After surging to a new all-time high on Monday, Cleveland-Cliffs Inc. (NYSE:CLF) fell sharply after Wells Fargo told investors to “sell,” while giving the company an $11 price target.
The downgrade followed Cleveland-Cliffs Inc. (NYSE:CLF) that it would diversify from steelmaking into rare earths mining in a bid to support government goals to prop up domestic supply.
The company added that it officially kicked off its expansion efforts, with the exploration rare earths potential of two sites in Michigan and Minnesota.
“We don’t know of other deposits in the region, and would be skeptical of an attractive return, absent further information,” Wells Fargo said in its market note.
In the third quarter of the year, Cleveland-Cliffs Inc. (NYSE:CLF) widened its net loss attributable to shareholders by 2.87 percent to $251 million from $244 million in the same period last year. Revenues, on the other hand, inched up by 2.8 percent to $4.7 billion from $4.57 billion year-on-year.
While we acknowledge the potential of CLF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLF and that has 100x upside potential, check out our report about this cheapest AI stock.
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