Ten stocks kicked off the trading week lagging in performance, bucking a broader market rally amid negative developments that dampened investing appetite.
Meanwhile, the Dow Jones increased by 0.63 percent, while the S&P 500 rose by 0.52 percent. The tech-heavy Nasdaq rallied by 0.47 percent.
In this article, we name the 10 worst-performing companies on Monday and detail the reasons behind their drop. To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.
10. Fortive Corporation (NYSE:FTV)
Fortive Corporation declined by 3.36 percent on Monday to close at $52.13 apiece following the completion of its separation with Ralliant Corp. (NYSE:RAL).
In a statement, Fortive Corporation (NYSE:FTV) said it successfully concluded its separation with the Precision Technologies segment, through the 100 percent spin-off of Ralliant Corporation to its shareholders on June 28, 2025.
Fortive Corporation (NYSE:FTV) shares will continue to trade on the New York Stock Exchange under the symbol “FTV.” Effective Monday, Ralliant began regular way trading on the New York Stock Exchange under the symbol “RAL.”
In connection with the separation, Fortive Corporation (NYSE:FTV) shareholders received one share of common stock of Ralliant for every three shares of Fortive. Approximately 113 million shares of Ralliant common stock were distributed in the separation.
Concurrently, Olumide Soroye has assumed the role of President and Chief Executive Officer and joined Fortive Corporation’s Board of Directors. His appointment was part of a planned transition, previously announced in conjunction with the separation of Fortive and Ralliant.
9. Pony AI Inc. (NASDAQ:PONY)
Pony AI dropped its share prices by 3.37 percent on Monday to close at $13.20 apiece as investors were in a wait-and-see mode for any updates on Uber Technologies Inc.’s (NYSE:UBER) planned acquisition of the Chinese robotaxi firm’s US subsidiary.
Last week, reports surged that Uber’s founder, Travis Kalanick, was eyeing to acquire Pony AI Inc.’s (NASDAQ:PONY) US arm, and that the ride-hailing giant has expressed its support to fund the acquisition.
Pony AI Inc. (NASDAQ:PONY) has been mulling over spinning off or selling its US arm since 2022, even going as far as creating a copy of its software.
The buyout bid followed Pony AI Inc. (NASDAQ:PONY) and Uber Technologies Inc.’s (NYSE:UBER) partnership of expanding the former’s international market presence, kicking off with key markets in the Middle East.
8. Hertz Global Holdings, Inc. (NASDAQ:HTZ)
Hertz Global declined for a second day on Monday, shedding 3.39 percent to finish at $6.83 apiece following the issuance of a new $685-million debt.
According to the company, its subsidiary Hertz Vehicle Financing III LLC issued two series of notes in a bid to raise funds for operational liquidity and fleet expansion.
Three days prior, Hertz Vehicle Financing III also amended its Series 2021-A Supplement to issue $300 million in new Class B Notes with a fixed interest rate of 9.28 percent. The notes have a tenor of three years and will mature in June 2028.
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is an American car rental company based in Florida, which owns brands, namely Dollar Rent A Car, Firefly Car Rental, and Thrifty Car Rental. It is set to announce the results of its second quarter earnings performance on August 7, 2025.
7. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Polestar Automotive fell by 3.6 percent on Monday to close at $1.07 apiece amid the lack of fresh catalyst to boost investing appetite.
In recent news, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) announced plans to raise $200 million in fresh funds through a private placement.
In a statement, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) said it sold more than 190 million Class A American Depositary Shares to PSD Investment at a price of $1.05 apiece.
The company said proceeds from the transaction will be used for working capital requirements and general corporate purposes.
Prior to the closing of the transaction, PSD Investment intends to convert 20 million of its Class B ADS shares into Class A ADS shares in order to keep the overall voting power of its Polestar shareholdings below 50 percent.
6. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
BridgeBio Pharma dropped for a second day on Monday, shedding 3.74 percent to finish at $43.18 apiece as investors digested the sale of royalty rights from its heart drug Beyonttra.
In a statement, BridgeBio Pharma, Inc. (NASDAQ:BBIO) said that it secured $300 million in fresh funds from HealthCare Royalty funds—an investment company managed by Blue Owl—for the sale of 60 percent royalty rights from Beyonttra’s first $500 million sales in Europe.
Last year, BridgeBio Pharma, Inc. (NASDAQ:BBIO) entered into an exclusive licensing agreement with Bayer Consumer Care AG to commercialize Beyonttra in Europe, with the former raising $210 million in upfront payment with expectations to receive $75 million in near-term milestone payments.
Beyonttra is an orally administered near-complete stabilizer of transthyretin indicated for the treatment of wild-type or variant transthyretin amyloidosis in adult patients with cardiomyopathy.
5. KE Holdings Inc. (NYSE:BEKE)
KE Holdings ended two straight days of losses on Monday, shedding 4.32 percent to finish at $17.74 apiece after the company hinted at issuing additional shares.
While no specifics have been divulged, a potential follow-on offer was among those approved by shareholders during its recently concluded annual general meeting last week.
According to KE Holdings Inc. (NYSE:BEKE), the directors of the company were granted a general unconditional mandate “to allot, issue and deal with additional Class A ordinary shares or equivalents and a general unconditional mandate to repurchase the company’s own shares, respectively.”
Typically, existing investors take issuance of new shares in a negative light, given its potential to dilute the value of existing stocks.
KE Holdings Inc. (NYSE:BEKE) also announced the approval of its shareholders for the re-election of Jeffrey Zhaohui Li as a non-executive director, and Xiaohong Chen as an independent non-executive director.
4. TAL Education Group (NYSE:TAL)
TAL Education dropped its share prices for a second day on Monday, losing 4.4 percent to finish at $10.22 apiece after earning a stock downgrade from Citigroup.
In a market note last week, Citigroup downgraded TAL Education Group’s rating and price target (NYSE:TAL) to “neutral” from “buy” and to $11.54 from $13.4, citing a balanced risk-reward profile.
Citigroup said that while TAL Education Group (NYSE:TAL) has a solid downside floor, it also faces limited near-term upside potential.
Concerns, however, linger on the company’s Content Solutions business, which focuses on learning devices, as persistent losses in the said segment are expected to spill over to fiscal year 2027 and significantly impact overall profitability.
TAL Education Group (NYSE:TAL) is a Chinese company listed only on the US stock exchange. While its core business is in China, it also operates in other countries such as Hong Kong, the US, Canada, and Singapore. It currently invests heavily in Artificial Intelligence in a bid to bolster its modern learning products and services.
3. Tempus AI, Inc. (NASDAQ:TEM)
Tempus AI dropped for a second day on Monday, shedding 4.48 percent to close at $63.54 apiece following the announcement of a $400-million debt issuance.
In a statement, Tempus AI, Inc. (NASDAQ:TEM) said that it plans to raise the funds through a convertible senior notes issuance to qualified institutional buyers. The notes have a tenor of five years and will mature in July 2030.
Tempus AI, Inc. (NASDAQ:TEM) also granted an overallotment option of up to $60 million, which can be exercised within a 13-day period beginning on the date the notes are first issued.
The notes will be general unsecured obligations and will accrue interest payable semiannually in arrears unless earlier converted, redeemed, or repurchased.
Upon conversion, the company will either pay in cash or a combination of cash and shares for its Class A common shares.
Tempus AI, Inc. (NASDAQ:TEM) said proceeds from the offer will be used to repay $274.7 million worth of outstanding senior secured term loans, including any unpaid premium and interest, strategic acquisitions, and general corporate purposes, among others.
If the buyers exercise their overallotment option, the company said proceeds from the overallotment will be used to purchase additional notes and for other general corporate purposes.
2. AST SpaceMobile, Inc. (NASDAQ:ASTS)
AST SpaceMobile dropped its share prices by 5.33 percent on Monday to close at $46.73 apiece as investors resorted to profit-taking following its surge to a record high last week.
On Tuesday last week, AST SpaceMobile, Inc. (NASDAQ:ASTS) jumped to a new high of $54.05 as investors scooped up shares ahead of its official inclusion in the Russell 1000 index, which took effect after the market closed on Friday. The Russell 1000 Index tracks the largest 1,000 US companies by market capitalization. It is widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
“Joining the Russell 1000 Index marks another important milestone as we work to deliver on our mission of eliminating coverage gaps and bringing cellular broadband connectivity directly to the mobile devices of the billions of people who remain unconnected,” said AST SpaceMobile, Inc. (NASDAQ:ASTS) CFO Andrew Johnson.
“This inclusion will expand our visibility among investors as we continue to advance our technology, scale operations, and execute against our global growth plans,” he added.
1. YPF Sociedad Anónima (NYSE:YPF)
YPF Sociedad Anónima (NYSE:YPF) dropped by 5.64 percent on Monday to end at $31.45 apiece as investors sold off positions to mitigate risks from the revival of a legal case between Argentina and companies in which it was involved.
On Monday, a US Judge ordered Argentina to relinquish its controlling stake in YPF Sociedad Anónima (NYSE:YPF) as partial payment for the $16-billion judgment to minority shareholders over the country’s 2012 nationalization of the group.
Argentina was given 14 days to transfer its ownership to a global custody account as partial payment.
According to Judge Loretta Preska of the Southern District of New York, Argentina was found liable for $16 billion in damages, saying that the country violated the rights of minority shareholders when it took away the controlling stake without making a tender offer.
The plaintiffs were largely funded by litigation funder Burford Capital, whose shares jumped by more than 20 percent following the Court decision.
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