Ten firms finished off the trading week in a bloodbath, mirroring a broader market sentiment that was dented anew by President Donald Trump’s new threat to slap the European Union with higher tariffs.
The Dow Jones dropped by 0.61 percent, the S&P 500 declined by 0.67 percent, and the tech-heavy Nasdaq fell by 1 percent.
Meanwhile, Friday’s worst-performing stocks shed losses due to a flurry of corporate developments, including weak outlook guidance and dismal earnings performance.
In this article, we name the 10 top losers and detail the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.
10. Strategy Incorporated (NASDAQ:MSTR)
Shares of Strategy Inc. dropped for a third straight day on Friday, shedding 7.5 percent on Friday to close at $369.51 apiece, after getting hit with a class action lawsuit for allegedly disclosing false information to the public.
In a regulatory filing, Strategy Incorporated (NASDAQ:MSTR) said it received a class action lawsuit against its executives on May 16, alleging that the company made false statements about its anticipated profitability, the various risks associated with Bitcoin volatility, and the magnitude of the losses.
However, it said that it intends to defend itself against the claims.
“At this time, we cannot predict the outcome, or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter,” it added.
In the first quarter of the year, Strategy Incorporated (NASDAQ:MSTR) posted a 3.5-percent increase in revenues to $111.1 million from $115.2 million in the same period last year. Net earnings from operations narrowed by 92 percent to $15.4 million from $203.7 million year-on-year.
9. Webull Corp. (NASDAQ:BULL)
Webull Corp. saw its share prices decline by 8.89 percent on Friday to end at $12.30 apiece as investors took profits to take advantage of the prior day’s rally, buoyed by its impressive earnings performance in the first quarter of the year.
During the period, Webull Corp. (NASDAQ:BULL) narrowed its net loss attributable to shareholders by 99 percent to $8.6 million from $1.1 billion registered in the same period last year.
Revenues, on the other hand, grew by 31.6 percent to $117 million from $88.9 million year-on-year.
In a statement, Webull Corp. (NASDAQ:BULL) President Anthony Denier attributed the strong performance to the significant accounting and trading volume growth during the period.
For his part, CFO Hai Chen Wang said: “We continue to see strong account growth as our global teams execute on our strategy in 2025 to address and meet the long-term investing needs of individual investors around the world.”
8. WeRide Inc. (NASDAQ:WRD)
WeRide dropped its share prices by 9.62 percent on Friday to finish at $9.11 apiece as investors resumed profit-taking following the previous days’ surge, buoyed by its recently inked partnership with Tencent Cloud.
Under the agreement, WeRide Inc. (NASDAQ:WRD) and Tencent Cloud joined forces in deploying Level 4 autonomous robotaxis into Weixin/WeChat and Tencent Maps, as well as research and development efforts, commercialization, and expansion into international markets.
WeRide Inc.’s (NASDAQ:WRD) partnership with Tencent followed its recently deepened collaboration with ride-hailing giant Uber Technologies Inc. (NYSE:UBER) for the expansion of its robotaxis into 15 more locations, under the Uber app. The locations included key markets in Europe and the Middle East.
WeRide Inc. (NASDAQ:WRD) and Uber Technologies Inc.’s (NYSE:UBER) agreement kicked off last year with the launch of robotaxis in Abu Dhabi and Dubai, as they aim to expand their autonomous vehicle partnership to several new cities each year, all outside of the US and China.
7. Ross Stores Inc. (NASDAQ:ROST)
Discount retailer Ross Stores dropped its share prices by 9.85 percent on Friday to end at $137.26 each, primarily due to a pessimistic business outlook and the withdrawal of its earlier growth targets.
“While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. As such, we expect pressure on our profitability if tariffs remain at elevated levels,” said Ross Stores Inc. (NASDAQ:ROST) CEO Jim Conroy, adding that the company was withdrawing previously provided annual sales and earnings guidance.
For the second quarter of the year, Ross Stores Inc. (NASDAQ:ROST) now expects same-store sales growth to remain flat or grow by up to 3 percent, much slower than the 4-percent gain registered in the same period last year.
Earnings per share, on the other hand, are now projected to be in the range of $1.40 to $1.55, versus a $1.59 growth in the same comparable period.
In the first quarter of the year, Ross Stores Inc.’s (NASDAQ:ROST) net income edged lower by 1.8 percent to $479 million from the $488 million registered in the same period last year. Revenues grew by 2.6 percent to $4.984 billion from $4.858 billion year-on-year.
6. Copart Inc. (NASDAQ:CPRT)
Shares of Copart Inc. declined for a fifth consecutive day on Friday, losing 11.52 percent to close at $53.67 apiece after missing analysts’ earnings estimates and reporting a drop in vehicle sales in the first quarter of the year.
In its financial statement, Copart Inc. (NASDAQ:CPRT) said earnings per share came in at 42 cents, just in line with analyst estimates. However, revenues settled at $1.21 billion, short of the $1.23 billion consensus, but marked a 7.5 percent growth from the $1.1 billion reported in the same period last year.
Of the total revenues, Copart Inc. (NASDAQ:CPRT) saw a 2.1 percent dip in vehicle sales to $177 million versus $180.6 million year-on-year, while service revenues increased by 9.3 percent.
Attributable net income rose by 6.4 percent to $406.6 million from $383 million registered in the same period a year ago.
For the nine-month period, revenues increased by 11.2 percent to $3.5 billion from $3.17 billion in the same period last year, with vehicle sales inching up by 1.9 percent.
Attributable net income rose by 11.1 percent to $1.1 billion from $1.04 billion.
5. Workday Inc. (NASDAQ:WDAY)
Workday dropped its share prices by 12.52 percent on Friday to finish at $238.01 each as investors soured on its mixed earnings performance in the first quarter of fiscal year 2026.
In its financial statement, Workday Inc. (NASDAQ:WDAY) said net income during the period declined by 36 percent to $68 million from the $107 million registered in the same period last year, despite revenues growing by 12.56 percent to $2.24 billion from $1.99 billion year-on-year.
Looking ahead, the company reiterated its fiscal 2026 subscription revenue growth outlook of 14 percent to $8.8 billion and increased its fiscal 2026 non-GAAP operating margin guidance to approximately 28.5 percent.
For the second quarter alone, subscription revenues are expected to grow by 13.5 percent to $2.16 billion, while non-GAAP operating margin is projected to increase by 28 percent year-on-year.
“Workday delivered another solid quarter, a testament to the durability of our business and the relevance of our platform as CEOs increasingly turn to us to drive efficiency, agility, and growth,” said Workday Inc. (NASDAQ:WDAY) CEO Carl Eschenbach.
”We are delivering real ROI for our customers by helping them effectively manage their most critical assets—people and money—on one unified platform with AI at the core,” he added.
4. Pony AI Inc. (NASDAQ:PONY)
Pony AI saw its share prices drop by 15.44 percent to finish at $17.41 apiece as investors resorted to profit-taking following the previous day’s surge.
In recent news, Pony AI Inc. (NASDAQ:PONY) reported an 80 percent wider net loss of $37.4 million versus the $20.8 million registered in the same period last year.
The company attributed the increase to investments in its Generation 7 vehicles, coupled with one-time expenses associated with its IPO that was only settled during the period, as well as increased employee compensation.
Revenues, on the other hand, grew by 12 percent to $14 million from $12.5 million registered in the same period last year, thanks to a 200-percent jump in its Robotaxi services.
In recent news, Pony AI Inc. (NASDAQ:PONY) partnered with ride-hailing giant Uber Technologies Inc. (NYSE: UBER) to expand and offer its robotaxis in the Middle East through the Uber app.
The two companies also committed to deepening their partnership through expansion into other global markets.
3. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Booz Allen fell by 16.53 percent on Friday to finish at $107.79 each as investors were spooked by a pessimistic outlook and announcements of job cuts.
In a stockholders’ meeting on Friday, Booz Allen Hamilton Holding Corporation (NYSE:BAH) said it was slashing as much as 7 percent of its 36,000 total workforce this quarter in response to the Trump administration’s move to reduce government spending.
According to Chief Finance Officer Matt Calderone, most of the job cuts will take place in the civil business.
“We are seeing agency reorganizations, reductions in government personnel and spending levels, as well as contract reviews,” said CEO Horacio Rozanski. “These are especially acute in civilian agencies.”
Booz Allen Hamilton Holding Corporation (NYSE:BAH) generates most of its revenues from government contracts. With the reduced government spending, it said it now expects revenues to fall by low double-digits in the full fiscal year of 2026.
2. MINISO Group Holding Limited (NYSE:MNSO)
Miniso Group saw its share prices nosedive by 17.58 percent on Friday to finish at $18.29 apiece following a disappointing earnings performance in the first quarter of the year.
In its financial statement, MINISO Group Holding Limited (NYSE:MNSO) said net income attributable to shareholders declined by 28 percent to 416 million yuan from the 582 million yuan registered in the same period last year.
Revenues, on the other hand, increased by 18.9 percent to 4.4 billion yuan from the 3.7 billion yuan reported in the same period last year, on the back of a 9.1 percent revenue growth in Miniso mainland China.
Looking ahead, MINISO Group Holding Limited (NYSE:MNSO) said it entered 2025 facing an increasingly volatile market environment, but promised to stay resilient and agile to deliver long-term profitable growth.
“We are forging more holistic collaborations with our overseas partners to enhance synergies, upgrade store formats to improve operational efficiency and unlock potential in store opening space,” it said.
1. Deckers Outdoor Corporation (NYSE:DECK)
Deckers Outdoor Corp. tumbled by 19.86 percent on Friday to finish at $101.05 apiece as investors sold off positions following the lack of outlook guidance for the next fiscal year.
While the company highlighted its strong performance in the fourth quarter and fiscal year 2025, it only said it remains confident in exciting opportunities ahead.
“While the global trade environment has introduced greater near-term uncertainty, we are very confident in the exciting opportunities ahead for HOKA and UGG. We view these brands as industry leaders, each with iconic and innovative products that operate in differentiated marketplaces,” said Deckers Outdoor Corporation (NYSE:DECK) President and CEO Stefano Caroti.
“Alongside Deckers’ superb balance sheet, this positions us well to manage through the near-term with a focus on the long-term,” he added.
In the fourth quarter of fiscal year 2025, net income grew by 19 percent to $151 million from $127 million registered in the same period last year. Net sales, on the other hand, rose by 6 percent to $1.022 billion from $960 million year-on-year.
For the full-year period, net income grew by 27 percent to $966 million from $760 million, while net sales rose by 16 percent to $4.985 billion from $4.287 billion year-on-year.
While we acknowledge the potential of DECK, 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 DECK and has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
