Ten companies fell sharply on Wednesday, mirroring a broader market slump, as investors sold off positions on a series of negative developments surrounding their names.
Meanwhile, Wall Street’s main indices all finished in the red, with the Dow Jones down by 0.58 percent, the S&P 500 dropping by 0.56 percent, and the tech-heavy Nasdaq declining by 0.51 percent, as traders sold off positions ahead of the highly anticipated earnings performance of tech giant Nvidia Corp.. which came after the market bell.
In this article, let us take a look at the 10 worst-performing stocks and explore the reasons behind their poor performance. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.
10. CleanSpark, Inc. (NASDAQ:CLSK)
Shares of CleanSpark declined by 7.61 percent on Wednesday to finish at $9.11 apiece as investors sold off positions in line with the drop in Bitcoin prices.
As of 6:07 PM EST, the price of Bitcoin was down by 1.43 percent at the $107,000 level, as investors continued to book profits after reaching a record high last week. The weakness dribbled into CleanSpark, Inc. (NASDAQ:CLSK), alongside its cryptocurrency mining counterparts such as Riot Platforms Inc. and MARA Holdings Inc.
In the second quarter of fiscal year 2025, CleanSpark, Inc. (NASDAQ:CLSK) swung to a net loss attributable to shareholders of $138.8 million from a net income of $123.89 million in the same period last year.
Revenues, on the other hand, increased by 62 percent to $181.7 million from $111.8 million year-on-year.
Last month, CleanSpark, Inc. (NASDAQ:CLSK) was able to mine 633 Bitcoins, and sold 401.39, bringing its total holdings to 12,101 as of end-April.
9. Riot Platforms, Inc. (NASDAQ:RIOT)
Riot Platforms dropped its share prices by 8.32 percent on Wednesday to close at $8.38 apiece as investor sentiment was dampened by the decline in Bitcoin prices.
Riot Platforms, Inc.’s (NASDAQ:RIOT) stock declined alongside its peers, CleanSpark Inc. and MARA Holdings Inc., as traders booked profits following Bitcoin’s record high last week.
As of 6:07 PM EST, the price of Bitcoin was down by 1.43 percent at the $107,000 level.
Earlier this month, Riot Platforms, Inc. (NASDAQ:RIOT) said it was able to mine 463 Bitcoins, representing a 23-percent year-on-year growth, but lower by 13 percent month-on-month.
During the period, it was also able to sell 475 Bitcoins, bringing its total holdings to 19,211 as of end-April.
“During the month … we made the strategic decision to sell our monthly production of bitcoin to fund ongoing growth and operations. We continuously evaluate the best funding sources, considering a multitude of factors and prioritizing a strong balance sheet,” said Riot Platforms, Inc. (NASDAQ:RIOT) CEO Jason Les.
8. GDS Holdings Limited (NASDAQ:GDS)
GDS Holdings dropped for a second day on Wednesday, losing 8.73 percent to finish at $24.77 apiece as investors soured on an investment firm’s lower price target for the company while digesting its planned $623-million fundraising activity.
On Wednesday, Jefferies markedly lowered its price target for GDS Holdings Limited (NASDAQ:GDS) by 22 percent to $37.32 from $47.76 previously, following its planned fundraising program that is expected to dilute ADS by 5 percent.
However, Jefferies maintained its Buy recommendation on the stock.
In separate statements, GDS Holdings Limited (NASDAQ:GDS) said it was planning to raise a higher amount from the issuance of convertible notes, now at $500 million versus the $450 million previously. The notes carry a 2.32 percent yield and are set to mature in 2032.
Meanwhile, the remaining $123 million is expected to be raised from the issuance of American Depositary Shares (ADS), each representing eight Class A ordinary shares, at a price of $24.50 apiece.
The company said proceeds will be used for general corporate purposes, working capital needs, and the refinancing of its existing indebtedness, including potential future negotiated repurchases or redemption upon exercise of the investor’s put right of its convertible bonds due 2029.
7. MARA Holdings, Inc. (NASDAQ:MARA)
MARA Holdings fell by 9.61 percent on Wednesday to close at $14.86 apiece as investor sentiment was dampened by the drop in Bitcoin prices during the day.
As of 6:07 PM EST, the price of Bitcoin was down by 1.43 percent at the $107,000 level, as investors continued to take profits after hitting a new all-time high last week. MARA Holdings, Inc. (NASDAQ:MARA) dropped alongside its counterparts, CleanSpark Inc. and Riot Platforms Inc.
Earlier this month, MARA Holdings, Inc. (NASDAQ:MARA) said that it was able to mine 705 Bitcoins last month, which was 15 percent lower than the 829 Bitcoins mined in March. This brought its total ownership to 48,237.
MARA Holdings, Inc. (NASDAQ:MARA) also underscored that it opted not to sell any Bitcoin during the period.
“We remain laser-focused on transforming MARA into a vertically integrated digital energy and infrastructure company,” said MARA Holdings, Inc. (NASDAQ:MARA) Chairman and CEO Fred Thiel.
6. Cadence Design Systems, Inc. (NASDAQ:CDNS)
Cadence Design dropped its share prices by 10.67 percent on Wednesday to finish at $288.61 apiece as reports that it was ordered by the US government to stop selling their software to China weighed down on investor sentiment.
According to a report by the Financial Times, the Commerce Department instructed Cadence, alongside competitors Synopsis and Siemens EDA, to stop selling their designs to China. Synopsis, however, denied the report, saying it had not received any word from the government.
The Chinese market was Cadence Design Systems, Inc.’s (NASDAQ:CDNS) fourth-largest market in terms of revenue mix, accounting for 11 percent of its revenues during the first quarter of the year.
Americas remained the largest with 48 percent, followed by other Asian countries with 19 percent, and the EMEA (Europe, Middle East, and Africa) at 16 percent.
If reports are true, the directive could significantly hurt the company’s profits and margins in the future.
5. GameStop Corp. (NYSE:GME)
GameStop Corp. declined by 10.85 percent on Wednesday to finish at $31.21 apiece as investors resorted to profit-taking following three consecutive days of rally, while repositioning portfolios after pulling the trigger to buy $500 million of Bitcoins.
In a statement, GameStop Corp. (NYSE:GME) said it purchased 4,710 Bitcoins as it looked to other industries to grow its business.
It can be learned that GameStop Corp. (NYSE:GME) struggled to remain relevant amid the shifting consumer behavior in the gaming industry, pivoting to digital gaming purchases from physical ones.
Meanwhile, the $500 million forms part of the company’s $1.3 billion Bitcoin purchase program, an amount it planned to raise from offering convertible senior notes.
It can be learned that the gaming company had already ventured into cryptocurrency in 2022 with the establishment of a now-defunct cryptocurrency wallet that sent its share prices skyrocketing for days after the launch.
4. Pony AI Inc. (NASDAQ:PONY)
Pony AI fell by 13.54 percent on Wednesday to finish at $18.46 apiece as investors resorted to profit-taking following the prior day’s surge, buoyed by its official entry into the Middle East through its partnership with Dubai’s Roads and Transport Authority (RTA).
In a statement, Pony AI Inc. (NASDAQ:PONY) said the partnership covers the deployment of its advanced robotaxi fleet in the region, in support of the city’s 2030 Smart City Vision, which targets to transition 25 percent of its transportation to autonomous mode by 2030.
According to the company, initial supervised trials are set to launch in 2025, followed by fully driverless operations in 2026.
Additionally, Pony AI Inc. (NASDAQ:PONY) plans to start mass production and deployment of its seventh-generation robotaxis in the second half of 2025, as well as ramp up its robotaxi fleet globally to thousands of vehicles within the next two years.
The company also said that it collaborated with industry leaders such as Toyota, GAC Motor, and BAIC Motor to develop its seventh-generation robotaxis.
3. Sable Offshore Corp. (NYSE:SOC)
Sable Offshore saw its share prices decrease by 15.31 percent on Wednesday to end at $27.89 apiece after the California Coastal Commission secured a preliminary injunction against the company’s pipeline repair and maintenance activities within the coastal zone of Santa Barbara County.
The news raised concerns about project delays and additional costs for Sable Offshore Corp. (NYSE:SOC) anew.
The legal proceedings stemmed from claims that the company did not secure necessary coastal development permits for the ongoing repair and maintenance on the Las Flores oil facility, which was ordered shut in 2015 following an oil spill from a ruptured pipeline that released 450,000 gallons of oil near Refugio State Beach.
The injunction halts Sable Offshore Corp. (NYSE:SOC) from continuing works for the Las Flores facility until it secures a new, operative CDP or other form of Coastal Act authorization.
2. Okta, Inc. (NASDAQ:OKTA)
Okta Inc. declined by 16.16 percent on Wednesday to end at $105.22 apiece as investors soured on the company’s weak outlook guidance for the rest of the year.
In a statement, Okta, Inc. (NASDAQ:OKTA) said it is now “factoring in potential risks related to the uncertain economic environment” for the remainder of fiscal year 2026.
In the first quarter, Okta, Inc. (NASDAQ:OKTA) swung to a net income of $62 million from a $40 million net loss in the same period last year. Revenues were higher by 11.5 percent to $688 million from $617 million year-on-year.
For the second quarter, the company expects revenues to grow by 10 percent to a range of $710 million to $712 million, as well as revenues of $2.85 billion to $2.86 billion for the full fiscal year of 2026.
“The world’s biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases. We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers,” said Okta, Inc. (NASDAQ:OKTA) CEO Todd McKinnon.
1. Tempus AI, Inc. (NASDAQ:TEM)
Tempus AI nosedived by 19.23 percent on Wednesday to close at $53.20 apiece following a short-seller report’s negative comments and concerns about the company.
In a statement, investment firm Spruce Point Capital Management, which is a known short-seller of Tempus AI, Inc. (NASDAQ:TEM), outlined its concerns, saying that the company’s management and board members “have a history of promoting disruptive technology companies which have frequently resulted in financial restatements and shareholder losses.”
It also expressed concerns about Tempus AI, Inc.’s (NASDAQ:TEM) artificial intelligence capabilities, given minimal revenues and product demonstrations, which it said appear to show irreconcilable inputs.
“[We] believe and estimate that shares of Tempus AI, Inc. (NASDAQ:TEM) … face up to 50 percent- 60 percent potential downside risk, or $26.35 – $32.95 per share,” it said.
Tempus AI has yet to issue a comment about the allegations.
While we acknowledge the potential of TEM, 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 TEM and that has 100x upside potential, check out our report about this cheapest AI stock.
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