Ten stocks lost their momentum on Thursday, mirroring a mostly pessimistic broader market, as investors took path from cautious outlooks in their respective industries and earnings results, among others.

Meanwhile, Wall Street’s major indices finished mixed, with the Dow Jones the sole gainer by 0.11 percent. The S&P 500 and the Nasdaq both declined by 0.13 percent and 0.72 percent, respectively.

In this article, we spotlight 10 of the worst-performing stocks on Thursday and break down the reasons behind their weak performance.

To come up with the list, we focused exclusively on stocks with more than $2 billion in market capitalization and 5 million shares in trading volume.

10. ServiceNow Inc. (NYSE:NOW)

ServiceNow dropped for a third straight day on Thursday, shedding 9.94 percent to close at $116.73 apiece as investors turned cautious over the threats of AI for the broader software-as-a-service (SaaS) industry, overshadowing the company’s strong earnings performance in the fourth quarter of last year.

ServiceNow Inc. (NYSE:NOW) declined alongside its counterparts, namely SAP, Salesforce, Adobe, and Datadog, among others, after JPMorgan raised concerns that advances in AI capabilities could challenge SaaS companies selling subscription-based products.

It said that the malaise in software sentiment persists, coupled with a seemingly paradoxical and vicious cycle of depressed valuations, with maintained, if not rising, investor expectations.

Meanwhile, ServiceNow Inc. (NYSE:NOW) reported higher earnings in the fourth quarter of the year, with net income jumping by 4 percent to $401 million from $384 million in the same period a year earlier, bringing its full-year net profit up by 23 percent to $1.75 billion from $1.42 billion year-on-year.

Total revenues increased by 21 percent to $3.57 billion from $2.96 billion, bringing its full-year tally up by 21 percent to $13.3 billion from $10.98 billion year-on-year, and beating earlier guidance.

For the first quarter, ServiceNow Inc. (NYSE:NOW) is gunning for subscription revenues between $3.650 billion and $3.655 billion, or an implied growth of 21.5 percent year-on-year.

For the full year, subscription revenues are projected to hit $15.53 billion to $15.57 billion, or a 20.5 percent to 21 percent increase from 2025 levels.

9. Microsoft Corp. (NASDAQ:MSFT)

Microsoft saw its share prices drop by 10 percent on Thursday to close at $433.50 apiece as investors resorted to a combination of profit-taking following five straight days of gains, while turning cautious over its heavy spending and exposure to OpenAI.

In an earnings call during the day, Microsoft Corp. (NASDAQ:MSFT) said that net income in the second quarter ending December 31, 2025 jumped by 59.5 percent to $38.46 billion from $24.1 billion in the same period a year earlier, while revenues grew by 17 percent to $81.3 billion from $69.6 billion year-on-year. Of the total, cloud revenues surged by 26 percent to $51.5 billion.

However, the strong performance was overshadowed by a significant 66 percent jump in capital expenditures during the year—at $37.5 billion—especially with Microsoft Corp.’s (NASDAQ:MSFT) 45 percent OpenAI backlog.

In an interview with CNBC, Jefferies analyst Brent Thill raised concerns about the technology giant’s exposure to OpenAI, saying that the backlog “is really good, but the disclosure that OpenAI is 45 percent of their backlog, it goes back to the situation where, ‘Can OpenAI achieve these financial goals to pay Oracle, Microsoft and many of the providers?’”

Previously, Microsoft Corp. (NASDAQ:MSFT) forecasted capex of $140 billion for the fiscal year ending June 2026.

8. Hycroft Mining Holding Corp. (NASDAQ:HYMC)

Hycroft dropped for a second day on Thursday, shedding 11.53 percent to close at $45.73 apiece as investors took path from the decline in prices of precious metals during the session.

After hitting a series of record runs, spot prices of silver and gold both dropped by more than 1 percent during the session, a day after the Federal Reserve’s decision to keep interest rates unchanged.

Additionally, investors appeared to have taken profits after gold and silver’s surge of 23.5 percent and 51 percent, respectively, year-to-date.

Meanwhile, Hycroft Mining Holding Corp. (NASDAQ:HYMC) has already jumped by as much as 147 percent year-to-date, having hit its highest price of $58.73 last week.

In recent news, Hycroft Mining Holding Corp. (NASDAQ:HYMC) announced that it had found the highest grades of silver in the Vortex Silver System at its Nevada site, and that drilling results in all depths and directions show continuity of resources.

Hycroft Mining Holding Corp. (NASDAQ:HYMC) is a US-based gold and silver producer exploring and developing one of the world’s largest precious metals deposits in Nevada.

7. Applied Optoelectronics Inc. (NASDAQ:AAOI)

Applied Optoelectronics declined by 12.51 percent on Thursday to finish at $39.57 apiece as investors resorted to profit-taking following the previous day’s surge to a nearly eight-year high.

After hitting its highest price of $46.30 in the previous trading day, Applied Optoelectronics Inc. (NASDAQ:AAOI) has already seen its stock jump by 33 percent in January alone.

Meanwhile, the listed firm carries a “buy” recommendation from Zacks Research, reflecting its optimism for its laser transceivers, which it deems critical to the AI revolution “because they overcome the speed and bandwidth limitations of traditional copper cables, making them valuable for enabling the massive, low-latency data flow required from training and operating large AI models.”

“Additionally, with copper prices rising currently, these fiber optic cables are even more valuable,” the research firm added.

Zacks said that Applied Optoelectronics Inc. (NASDAQ:AAOI) is currently benefiting either way, from both a shift away from expensive copper and a surge in data center expansion.

Earlier, Applied Optoelectronics Inc. (NASDAQ:AAOI) unveiled a new 400-milliwatt narrow-line-width pump laser designed to meet growing demand for silicon photonics and co-packaged optics (CPO) in AI data centers.

According to the company, laser addresses situations where lasers with broader line widths or higher noise figures limit performance. It can source directly into semiconductor chip-scale systems to provide hyperscalers with a robust, high-performance light source for CPO, silicon photonics, and other applications that demand precision and power from a single, stable wavelength.

6. Celestica Inc. (NYSE:CLS)

Celestica snapped a four-day winning streak on Thursday, slashing 13.10 percent to close at $300 apiece as expectations for a strong earnings performance have already been priced in, thanks to strong demand from AI.

In an updated report, Celestica Inc. (NYSE:CLS) said that its net income for full-year 2025 soared by 94 percent to $832.5 million from $428 million in 2024, with $267.5 million registered in the fourth quarter alone, or an increase of 76 percent from the $151.7 million in the same period a year earlier.

Revenues for the full year surged by 28 percent to $12.39 billion from $9.65 billion, while revenues in the fourth quarter alone inched up by 4.4 percent to $3.65 billion from $2.54 billion.

Amid the strong results, Celestica Inc. (NYSE:CLS) raised its revenue outlook for 2026 to $17 billion, as well as adjusted earnings per share to $8.75, as demand for AI-related data center technologies continues to grow.

“We are continuing to align with our largest customers on their multi-year capacity roadmaps in support of their long-term AI infrastructure investments. We believe the revenue growth trajectory that we anticipate in 2026 will be sustained into 2027, and as a result, we are strategically increasing our planned capital investments to $1 billion this year. Importantly, we anticipate being able to fully fund this expansion organically through our operating cash flow,” said Celestica Inc. (NYSE:CLS) Rob Mionis.

5. Las Vegas Sands Corp. (NYSE:LVS)

Las Vegas Sands dropped its share prices by 13.96 percent on Thursday to end at $52.71 apiece as investors soured on weak results from its Macau operations as a result of China’s crackdown on high-rolling gamblers who make up for a significant chunk of the special administrative region’s casino revenues.

In full-year 2025, Las Vegas Sands Corp. (NYSE:LVS) said that adjusted EBITDA from its Macau operations dipped by 0.7 percent to $2.31 billion from $2.33 billion, albeit the fourth quarter saw a 6.5 percent jump to $608 million from $571 million year-on-year.

“We are disappointed with that Ebitda number,” Las Vegas Sands Corp. (NYSE:LVS) Chief Executive Officer Robert Goldstein was quoted as saying in a call with analysts.

In terms of revenues, Las Vegas Sands Corp. (NYSE:LVS) said that Macau still recorded a 5 percent jump at $7.47 billion versus $7.11 billion in 2024, while in the fourth quarter alone, Macau revenues surged by 16 percent to $2.06 billion from $1.77 billion year-on-year.

In the broader front, attributable net income increased by 12 percent in full-year 2025 to $1.627 billion from $1.446 billion, while in the fourth quarter, attributable net income jumped by 22 percent to $395 million from $324 million.

Net revenues for the full-year stood at $13 billion, higher by 15 percent than the $11.3 billion in 2024, while net revenues in the fourth quarter increased by 26 percent to $3.65 billion from $2.9 billion year-on-year.

4. Vizsla Silver Corp. (NYSEAmerican:VZLA)

Vizsla Silver dropped its share prices by 14.87 percent to close at $5.84 apiece as investors unloaded portfolios following news that 10 of its employees had been abducted by an armed group from an accommodation it was renting out.

According to local news outlet Latinus, 10 mining workers temporarily staying at the La Clementin subdivision in Concordia, Mexico, have been reported missing since January 23.

According to residents, an armed group arrived in the area around 6:30 AM on the said date and took the workers by force.

Meanwhile, Vizsla Silver Corp. (NYSEAmerican:VZLA) said in a statement that the incident is currently under investigation, and that information remains limited.

It said it mining operations have been temporarily suspended as a precautionary measure.

“Local authorities have been notified, and the company’s crisis management and security response teams are actively engaged. The company’s immediate priority is the safety and well-being of the individuals involved,” Vizsla Silver Corp. (NYSEAmerican:VZLA) said.

Meanwhile, Vizsla Silver Corp. (NYSEAmerican:VZLA) also declined alongside its counterparts after spot prices of silver dropped by 1 percent on the same day.

3. SAP SE (NYSE:SAP)

SAP SE fell to a new 52-week low on Thursday, as investors took path from an investment firm’s cautious outlook for the broader software-as-a-service (SaaS) sector amid the potential threats of the rapidly growing AI.

At intra-day trading, the stock dropped to its lowest price of $195.14 before gaining strength towards the close to finish the day at $200.21, or down by 15.20 percent from the previous trading session.

SAP SE (NYSE:SAP) declined alongside its counterparts after JPMorgan raised concerns that advances in AI capabilities could challenge SaaS companies selling subscription-based products, which is currently the listed software provider’s largest revenue contributor.

JPMorgan added that the malaise in software sentiment persists, coupled with a seemingly paradoxical and vicious cycle of depressed valuations, with maintained, if not rising, investor expectations.

Meanwhile, SAP SE (NYSE:SAP) reported strong earnings performance in the full year and fourth quarter of 2025.

From January to December, net income after tax soared by 138 percent to 7.49 billion euros from 3.15 billion euros in 2024, while revenues inched up by 8 percent to 36.8 billion euros from 34.18 billion euros.

In the fourth quarter alone, SAP SE (NYSE:SAP) said that net income grew by 17 percent to 1.9 billion euros from 1.6 billion euros in the same period a year earlier. Total revenues inched up by 3 percent to 9.68 billion euros from 9.4 billion year-on-year.

2. LendingClub Corp. (NYSE:LC)

LendingClub extended its losing streak to a third consecutive day on Thursday, slashing 16 percent to finish at $16.44 apiece as investors digested the company’s shift to fair value option accounting, overshadowing announcements of strong earnings performance.

According to the company, it would start to transition to fair value accounting, which removes the upfront provision for credit losses under the previous standard, in a bid to improve the alignment of revenue and credit costs, and support higher returns on capital.

LendingClub Corp. (NYSE:LC) Chief Finance Officer Drew LaBenne said that the shift would create “a consistent accounting framework” across the company’s marketplace and bank businesses.

In other news, LendingClub Corp. (NYSE:LC) finished 2025 on a strong note, with net income soaring by 164 percent to $135.7 million from $51.3 million in 2024.

In the fourth quarter alone, net profit surged by 329 percent to $41.6 million from $9.7 million year-on-year.

Total revenues for the full year soared by 27 percent to $998.8 million from $787 million in 2024, while revenues in the fourth quarter alone jumped by 23 percent year-on-year, driven by higher marketplace sales and loan sale pricing, net interest margin, and strong credit performance.

1. Joby Aviation Inc. (NYSE:JOBY)

Joby Aviation declined by 16.68 percent on Thursday to close at $11.14 apiece as investors digested the potential dilution of existing shares following plans to raise  $1.38 billion in fresh funds from the issuance of convertible senior notes and new stocks.

In a statement, Joby Aviation Inc. (NYSE:JOBY) said that it plans to offer $690 million from the issuance of convertible senior notes due 2032, including a 30-day option to purchase up to an additional $90 million.

Another $690 million is expected to be raised from the sale of 60.79 million new shares to the public, including an overallotment option of more than 7.9 million shares.

The notes have a yield rate of 0.75 percent per annum, payable twice a year on the 15^th of February and August of every year until its maturity date in February 2032.

Noteholders would have an option to either redeem or convert their notes. If converted into shares, the conversion rate would be 70.4846 common shares for every $1,000 worth of notes.

Joby Aviation Inc. (NYSE:JOBY) said that proceeds from the offer will be used to fund its certification and manufacturing efforts and prepare for commercial operations, while the remainder will be used for working capital and other general corporate purposes.

Earlier this month, Joby Aviation Inc. (NYSE:JOBY) announced plans to expand its manufacturing footprint with the recent acquisition of its second facility in Ohio. The new site would support its plans to produce four electric air taxis per month beginning 2027.

While we acknowledge the potential of JOBY 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 JOBY and that has 100x upside potential, check out our report about this cheapest AI stock.

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