Ten stocks ended on a lackluster performance on Wednesday, defying an overall market optimism, as investors took path from a series of corporate news, alongside the lack of positive developments to boost buying appetite.
Meanwhile, all three major indices finished in the green, with the Nasdaq leading the gains by 0.78 percent. The S&P 500 followed with a 0.56 jump, while the Dow Jones was up by 0.26 percent.
Indices aside, we identify the 10 worst-performing stocks on Wednesday and break down the reasons behind their drop.
We focused exclusively on the stocks with a $2 billion market capitalization and 5 million shares in trading volume.
10. Flagstar Bank NA (NYSE:FLG)
Flagstar dropped its share prices by 4.26 percent on Wednesday to close at $13.50 apiece as investors booked early profits following an intra-day rally.
During the session, the stock opened at $14.20 and hit a day high of $14.29, or just 1.8-percent shy of its 52-week high of $14.54.
In other news, Flagstar Bank NA (NYSE:FLG) is set to pay $0.01 worth of dividends to all common shareholders as of March 7, payable on March 17, 2026.
The same payment and record dates apply to holders of three series of preferred stocks.
According to Flagstar Bank NA (NYSE:FLG), preferred shareholders of its Fixed-to-Floating Rate Noncumulative Perpetual Preferred Stock Series A are set to receive $15.94 for every share held, or equivalent to $0.3984 for each depositary share.
Meanwhile, owners of its Series B Noncumulative Convertible Preferred Stock and Series D Non-Voting Common Equivalent Stock would expect $3.3333 worth of dividends for every share they own.
Flagstar Bank NA (NYSE:FLG) is one of the largest regional banks in the US, with $87.5 billion of assets, $61 billion of loans, $66 billion of deposits, and $8.1 billion of total stockholders’ equity, as of December 31, 2025.
9. USA Rare Earth Inc. (NASDAQ:USAR)
USA Rare Earth extended losses for a second day on Wednesday, shedding 4.31 percent to finish at $18.20 apiece as investors parked funds amid the absence of fresh catalysts to boost buying appetite.
Despite the decline, USA Rare Earth Inc. (NASDAQ:USAR) was notably up by 53 percent year-to-date, albeit its month-to-date tally showed a decline of 18.8 percent.
Last month, the company announced a series of developments that saw the successful raising of as much as $3.1 billion in fresh funds. This includes the US government’s $1.6 billion financial backing, involving $1.3 billion in senior secured loans under the CHIPS Act, as well as another $277-million in proposed federal funding.
Additionally, USA Rare Earth Inc. (NASDAQ:USAR) raised another $1.5 billion from a private investment in public equity (PIPE) financing with strategic investors, covering the sale of 69.8 million common shares at a price of $21.50 per share.
The total capital is expected to help accelerate USA Rare Earth Inc.’s (NASDAQ:USAR) expansion initiatives, which will include the extraction of 40,000 metric tons (MT) per day of rare earth and critical mineral feedstock from its Round Top deposit; processing of a combined 8,000 MT per annum of third-party MREC and heavy rare earth elements, critical mineral oxides and concentrates; reshoring of 10,000 MT per annum of heavy REE metal- and alloy-making and strip-casting capacity; increase in neodymium-iron-boron magnet-making capacity to 10,000 MT per annum; and processing of 2,000 MT per annum of swarf from the NdFeB magnet production.
8. Applied Digital Corp. (NASDAQ:APLD)
Applied Digital extended its losing streak to a sixth straight day on Wednesday, dropping 4.92 percent to close at $31.91 apiece, as investor sentiment was further dragged by news that Nvidia Corp. has entirely disposed of its stake in the company.
Apart from Applied Digital Corp. (NASDAQ:APLD), Nvidia—considered the technology benchmark bolstering AI—also sold shares in Recursion Pharmaceuticals, WeRide, and Arm Holdings. It did not divulge the reason for the sale transactions.
In contrast, Nvidia acquired shares in CoreWeave Inc., Intel Corp., Nebius Group, Nokia Corp., and Synopsys Inc.
In other news, Applied Digital Corp. (NASDAQ:APLD) last month officially broke ground for its new AI factory campus in Dallas, Texas.
Called the Delta Forge 1, the new facility is capable of supporting 430 MW of total utility power and up to 300 MW of critical IT load. It could also scale up capacity over the next two years.
The facility will feature two 150-MW facilities on a 500-acre land area. Once fully operational, Applied Digital Corp. (NASDAQ:APLD) expects to generate more than 200 jobs, in addition to long-term contractors.
7. TeraWulf Inc. (NASDAQ:WULF)
TeraWulf slashed its share prices by 4.94 percent on Wednesday to close at $15.38 apiece as investors parked funds while waiting for the results of its earnings performance later this month, as well as further developments to bolster buying appetite.
According to the company, it is scheduled to release its financial and operating highlights in the fourth quarter and full-year 2025 after market close on Thursday, February 26.
Additionally, it would participate in eight upcoming conferences and events next month, including the Morgan Stanley Energy and Power Conference on March 2; the Citizens Technology Conference and the J.P. Morgan Global Leveraged Finance Conference, both on March 3; the Citadel Securities SMID Cap Generalist Conference on March 4; the Morgan Stanley TMT Conference on March 5; the Cantor Global Tech & Industrials Conference on March 10 and 11; the Nvidia GTC 2026 on March 16 to 19; and the Jefferies Virtual Power x Coin Conference on March 31.
Earlier this month, TeraWulf Inc. (NASDAQ:WULF) received an “overweight” rating and a $37 price target from Morgan Stanley, marking a 140-percent upside potential from its latest closing price.
According to Morgan Stanley, the company stands to benefit from its gradual transition to servicing the artificial intelligence sector from being a pure play bitcoin mining firm.
It said that once a miner has built a data center and signed a long-term lease contract with a creditworthy partner, the asset should be valued for its stability and ability to rake in cash flow in the long term.
6. SolarEdge Technologies Inc. (NASDAQ:SEDG)
SolarEdge snapped a two-day winning streak on Wednesday, shedding 5.47 percent to finish at $35.10 apiece as investors appeared to have already priced in a strong earnings performance last year prior to the official release.
Earlier this month, several solar companies announced a stellar earnings performance for the fourth quarter and full-year 2025 period, spilling over to SolarEdge Technologies Inc. (NASDAQ:SEDG) prior to its official results.
For its part, SolarEdge Technologies Inc. (NASDAQ:SEDG) narrowed its net loss by 77 percent to $405 million from $1.8 billion in 2024, as revenues jumped by 31 percent to $1.18 billion from $901 million.
In the fourth quarter alone, net loss shrank by 54 percent to $132 million from $287 million in the same quarter a year earlier, while revenues climbed by 70 percent to $335 million from $196 million year-on-year.
Looking into the first quarter of the year, SolarEdge Technologies Inc. (NASDAQ:SEDG) is targeting revenues between $290 million and $320 million.
Non-GAAP gross margin is expected to be within the range of 20 to 24 percent.
“In 2026 we are shifting decisively to offense, focused on moving toward profitable growth and capturing global market share through the rollout of the SolarEdge Nexis platform. By leveraging our DC expertise, investing in high-growth adjacencies like AI data center power, and maintaining our rigorous cost discipline, we believe we are positioning 2026 to be a transformational year for SolarEdge,” CEO Shuki Nir said.
5. Palo Alto Networks Inc. (NASDAQ:PANW)
Palo Alto tumbled by 6.82 percent on Wednesday to close at $152.35 apiece, as investors appeared to have already priced in a strong earnings performance in the second quarter of fiscal year 2026 prior to the official results.
In an updated report, Palo Alto Networks Inc. (NASDAQ:PANW) said that net income in the second quarter ending December 31 increased by 62 percent to $432 million from $267 million in the same period a year earlier. Total revenues jumped by 15 percent to $2.59 billion from $2.26 billion year-on-year.
In the six-month period, net income increased by 24 percent to $766 million from $618 million, while revenues jumped by 15 percent to $5.07 billion from $4.4 billion.
“We saw continued strength in platformizations, a trend that is accelerating due to AI—customers are keen to both modernize and normalize their cybersecurity stack, aligning them to our approach. We also saw steady and strong adoption of AI security, which we expect will be a long-term trend,” said Palo Alto Networks Inc. (NASDAQ:PANW) Chairman and CEO Nikesh Arora.
Looking ahead, Palo Alto Networks Inc. (NASDAQ:PANW) is targeting revenues in the range of $$11.28 billion to $11.31 billion, representing year-on-year growth of 22 to 23 percent. Diluted non-GAAP net income per share is also pegged at $3.65 to $3.70.
For the third quarter ending March, total revenues are projected at $2.941 billion to $2.945 billion, or an implied growth of 28 to 29 percent. Diluted non-GAAP EPS is expected at $0.78 to $0.80.
4. Halozyme Therapeutics Inc. (NASDAQ:HALO)
Halozyme snapped a two-day winning streak on Wednesday, shedding 9.01 percent to finish at $73.23 as investors digested a weak earnings performance in both the fourth quarter and full-year 2025.
In an updated report, Halozyme Therapeutics Inc. (NASDAQ:HALO) said that net income last year fell by 28.6 percent to $317 million from $444 million in 2024, despite revenues surging by 37 percent to $1.396 billion from $1.01 billion year-on-year.
Total revenues were said to be primarily driven by a 52 percent jump in royalties and strong sales from Enhanze partner products.
In the fourth quarter, Halozyme Therapeutics Inc. (NASDAQ:HALO) swung to a net loss of $141.59 million from a $137 million net income in the same period a year earlier, but total revenues increased by 51.6 percent to $451.77 million from $298 million year-on-year.
Looking ahead, Halozyme Therapeutics Inc. (NASDAQ:HALO) is targeting to generate between $1.71 billion and $1.81 billion in revenues this year, as well as $2 billion in 2028.
Royalty revenues alone are projected at $1.13 billion to $1.17 billion, while adjusted EBITDA is expected to be at $1.125 billion to $1.205 billion. Non-GAAP diluted EPS is pegged at $7.75 to $8.25.
3. VNET Group Inc. (NASDAQ:VNET)
VNET Group extended its losing streak to a third straight session on Wednesday, shedding 9.38 percent to close at $12.46 apiece as investor sentiment was dampened by its initiative to push back the maturity date of its $250 million convertible senior notes for another seven months.
In a regulatory filing, VNET Group Inc. (NASDAQ:VNET) said that it entered into an amended agreement with investment vehicles managed by Blackstone Tactical Opportunities, under which the notes, which were supposed to expire in March 2027, will now mature on October 1, 2027, giving the company extra time to repay the loan. The yield rate was maintained at 2 percent.
Under the agreement, each $1,000 worth of notes can be converted into 90.91 American depositary shares, each representing six Class A shares.
The amended loan agreement followed changes to VNET Group Inc.’s (NASDAQ:VNET) Finance leadership team, with the company welcoming Peter Zhihua Zhang as senior vice president for operational finance effective February 13. Zhang will be responsible for the company’s financial operations and is authorized to review and approve the company’s financial statements and related filings.
“As a homegrown talent who has grown and developed through multiple key positions across our finance operations, Peter embodies our strong culture of nurturing internal leaders. His deep financial management expertise and extensive institutional knowledge will further strengthen our strategic execution, supporting sustainable growth and long-term value creation,” said VNET Group Inc. (NASDAQ:VNET) interim CEO Josh Sheng Chen.
2. HF Sinclair Corp. (NYSE:DINO)
HF Sinclair fell by 10.86 percent on Wednesday to end at $51.57 apiece as investor sentiment was dampened by the sudden leave of absence (LOA) of its chief executive, Timothy Go.
In a statement, HF Sinclair Corp. (NYSE:DINO) said that the board of directors received a request from Go to take a voluntary LOA from his duties, without divulging the reason for the leave.
The board has accepted Go’s request, and in a special meeting, elected HF Sinclair Corp. (NYSE:DINO) board chairman Franklin Myers as interim president and CEO of the company.
“The Board has directed the Nominating, Governance and Social Responsibility Committee of the Board to commence a process to determine what future actions, whether interim or otherwise, should be taken in relation to the position of Chief Executive Officer and President,” the firm said.
Additionally, HF Sinclair Corp. (NYSE:DINO) is assessing certain matters related to the company’s disclosure processes, and assured that all other parties are working to complete the review.
In other news, the company saw its net income attributable to shareholders last year jump by 227 percent to $579 million from $177 million in 2024, despite sales and other revenues declining by 6 percent to $26.87 billion from $28.58 billion year-on-year.
1. Axcelis Technologies Inc. (NASDAQ:ACLS)
Axcelis ended two straight days of gains on Wednesday, slashing 16.74 percent to finish at $82.01 apiece as investor sentiment was dampened by a dismal earnings performance in both the full-year and fourth quarter of 2025.
In an updated report, Axcelis Technologies Inc. (NASDAQ:ACLS) said that net profit last year fell by 40.2 percent to $120.2 million from $200.99 million in 2024. Revenues declined by 17.5 percent to $839 million from $1.018 billion year-on-year.
In the fourth quarter alone, net profit decreased by 31 percent to $34.3 million from $49.9 million, while revenues dipped by 5 percent to $238 million from $252 million.
Axcelis Technologies Inc. (NASDAQ:ACLS) President and CEO Russell Low said that the company exited 2025 on a strong note.
“We achieved another record quarter of CS&I (customer solutions and innovation) revenue, reflecting the strength of our growing installed base and our strategic focus on driving upgrades and service contracts. We continue to execute with discipline, particularly as our customers navigate a mixed demand environment in Power and General Mature markets. At the same time, we are encouraged by the improving demand trends in our Memory market and expect this momentum to continue in 2026,” Low added.
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