Shares of 10 companies were hit hard on Thursday, bucking a mostly optimistic broader market, as investor sentiment was dragged down by disappointing earnings performances and loss of key partnerships.
The Dow Jones was the sole decliner during the day, losing 0.28 percent in its valuation. In contrast, the S&P 500 and Nasdaq Composite both ended firmer, rallying by 0.36 percent and 0.51 percent, respectively.
This article details the reasons behind the 10 companies’ lackluster performance.
To come up with Thursday’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
10. Under Armour Inc. (NYSE:UAA)
Under Armour saw its share prices drop by 7.77 percent on Thursday to close at $7.6 apiece after posting disappointing earnings results for the third quarter of fiscal year 2025.
In an earnings presentation, the company’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, Under Armour 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.
By country segment, only the Europe, Middle East, and Africa (EMEA) region registered strength, with net revenues for the quarter and nine months up by 4.9 percent and 1.3 percent, respectively.
Net revenues from Latin America fell by 15.5 percent for the quarter, as well as with North America, by 7.8 percent, and Asia Pacific, by 5.1 percent.
9. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Recursion Pharmaceuticals snapped a three-day winning streak on Thursday, falling 8.59 percent to close at $7.24 apiece as investors resorted to profit-taking while repositioning their portfolios ahead of the release of its fourth-quarter earnings performance.
In recent news, Recursion Pharmaceuticals announced favorable efficacy data in the second phase trial for its REC-994, a lead AI-derived candidate aimed at treating a fatal brain disease called cerebral cavernous malformation.
CCM is characterized by an enlargement and irregularity in the shape of small blood vessels in the brain. The vessels can alter blood flow and place patients at risk for seizures, headaches, progressive neurological deficits, and potentially fatal hemorrhagic stroke.
At present, CCM treatment is limited only to surgery and radiation therapy treatments.
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