Ten stocks fell hard on Tuesday, bucking an overall market optimism, as investors sold off on a combination of profit-taking and digesting company-specific developments that dampened appetite.
Meanwhile, all three main indices finished in the green, led by the tech-heavy Nasdaq, up 0.59 percent, followed by the Dow Jones, which rose 0.39 percent, and the S&P 500, which grew 0.25 percent.
In this article, we name the 10 stocks that fell the heaviest on Tuesday and detail the reasons behind their drop.
To come up with the list, we focused exclusively on companies with a $2 billion market capitalization and 5 million shares in trading volume.
Stock market charts. Photo by Kaboompics.com on Pexels
10. Block Inc. (NYSE:XYZ)
Block Inc. saw its share prices decline by 6.59 percent on Tuesday to close at $60.11 apiece as investor sentiment was dented by the launch of a probe into six “Buy Now, Pay Later” (BNPL) companies.
Afterpay—a subsidiary of Block Inc. (NYSE:XYZ) which engages in BNPL—was one of the six firms that received letters from the offices of the Attorneys General of California, Colorado, Connecticut, Illinois, Minnesota, North Carolina, and Wisconsin, seeking detailed information regarding their pricing and repayment structures, consumer contracts, disclosures, and user agreements, among others.
The other companies include Affirm, Klarna, PayPal, Sezzle, and Zip.
The seven states made the move after the Consumer Financial Protection Bureau dropped plans that would give consumers key legal protections and rights that apply to conventional credit cards, including the right to dispute charges, and demand a refund from lenders after a purchase return.
“As [President Donald] Trump rescinds critical protections for buy-now-pay-later consumers, it’s up to states now to ensure shoppers know what they are getting into, and to ensure these companies are held accountable,” said Connecticut Attorney General William Tong.
9. TeraWulf Inc. (NASDAQ:WULF)
TeraWulf extended its losses to a second day on Tuesday, shedding 7.06 percent to close at $14.22 apiece as investors sold off positions ahead of the mandatory conversion of its preferred shares into common stocks.
Next Tuesday, December 9, all convertible preferred shares of the company will automatically convert into 141.9483 common shares, a transaction that could result in a potential dilution. Any fractional interest would be paid in cash.
The conversion was in pursuant with the Certificate of Designations, which TeraWulf Inc. (NASDAQ:WULF) filed with the Secretary of State of the State of Delaware on March 16, 2022.
Under Section 10c of the Certificate of Designations, the company has the option to convert all its outstanding convertible preferred stocks into common shares, provided that for at least five trading days from November 4 to 24, 2025, whether or not consecutive, the closing price of its common shares exceeded 130 percent of the conversion price, or $10.
According to TeraWulf Inc. (NASDAQ:WULF) Chief Finance Officer Patrick Fleury, the mandatory conversion reinforces the company’s financial discipline and enables focus on growth moving forward.
“[This] announcement represents a key milestone on our journey to simplify TeraWulf’s capital structure going forward, supporting future growth while providing transparency to investors,” he said.
8. XPeng Inc. (NYSE:XPEV)
XPeng dropped its share prices by 7.92 percent on Tuesday to close at $19.66 apiece as investor sentiment was dampened by the lower vehicle deliveries in November.
In an updated report on Monday, XPeng Inc. (NYSE:XPEV) said that it delivered 36,728 smart electric vehicles last month, 12.6 percent lower than the 42,013 vehicles delivered in October. However, the latest figures were higher by 19 percent year-on-year.
For the first 11 months of the year, XPeng Inc. (NYSE:XPEV) has already delivered 391,937 units, representing a 156 percent jump year-on-year.
In terms of overseas operations, deliveries from January to November ended at 39,773 units, marking a 95 percent jump from the same period last year.
For this month, investors will be closely watching out for updates on its VLA 2.0 large model, which adopts a brand new “Vision-Implicit Token-Action” path, effectively eliminating the language translation step.
According to XPeng Inc. (NYSE:XPEV), this would achieve for the first time an end-to-end direct generation from visual signals to action commands, completely subverting the industry’s traditional “V-L-A” architecture and bringing a new physical model paradigm.
The VLA 2.0 is both an action generative model and a physical world model for understanding and prediction. It can also perform self-evolving learning while understanding the interaction laws of the real world.
The said model can be cross-domain driven and applied to AI cars, humanoid robots, and flying cars simultaneously.
7. Immunitybio Inc. (NASDAQ:IBRX)
ImmunityBio dropped for a second day on Tuesday, shedding 9.13 percent to close at $2.09 apiece as investors repositioned portfolios while waiting for fresh catalysts from the ongoing Piper Sandler 37th Annual Healthcare Conference.
Earlier, the company announced its participation in the 37th Piper Sandler Annual Healthcare Conference in New York from December 2 to 4.
Investors are expected to closely watch out for the company’s business updates and outlook related to its clinical pipelines.
Earlier last month, ImmunityBio, Inc. (NASDAQ:IBRX) announced that it narrowed its net loss attributable to shareholders by 21.6 percent to $67.25 million from $85.73 million in the same period last year, driven by increased product revenues and lower related-party interest expense.
Revenues soared by 425 percent to $32.06 million from $6.1 million year-on-year, thanks to strong sales from its non-muscle-invasive bladder cancer (NMIBC) treatment, Anktiva.
6. Cipher Mining Inc. (NASDAQ:CIFR)
Cipher Mining saw its share prices drop by 10.41 percent on Tuesday to close at $17.64 apiece as investors resorted to profit-taking following a whopping 40 percent gain last week.
Despite the shortened trading session last week in line with the Thanksgiving holiday, Cipher Mining Inc. (NASDAQ:CIFR) saw its share prices break past the $21 level before trimming gains to end the day at $20.35.
However, the said level still marked a 44 percent jump from the previous week, which investors took as an opportunity to book profits.
In other recent developments, Cipher Mining Inc. (NASDAQ:CIFR) announced plans to officially redeem its outstanding warrants for $0.01 apiece until 5 PM on December 26, 2025. The warrants are only exercisable on a cashless basis.
Any warrants that remained unexercised by the deadline will then be void and no longer exercisable.
In the third quarter of the year, Cipher Mining Inc. (NASDAQ:CIFR) trimmed its net loss by 96 percent to $3.28 million from $86.75 million in the same period last year.
Revenues soared by 197 percent to $71.7 million from $24.1 million year-on-year.
5. Astera Labs Inc. (NASDAQ:ALAB)
Astera Labs fell by 13.47 percent on Tuesday to finish at $142.94 apiece as investors resorted to profit-taking following three straight days of gains.
The decline came despite announcements that it would now embark on delivering custom connectivity solutions—a new offering designed to address the increasing complexity and diversity of next-generation AI infrastructure.
According to the company, it is underway with collaborating with hyperscaler partners to develop custom solutions designed to support NVLink connectivity.
The new custom connectivity solutions will leverage its proven expertise in delivering purpose-built connectivity solutions and COSMOS software-defined architecture for the world’s leading hyperscalers and AI platform providers.
“Hyperscalers are accelerating the deployment of next-generation AI infrastructure and require proven connectivity partners who can consistently deliver at cloud scale,” said Astera Labs Inc. (NASDAQ:ALAB) President and Chief Operating Officer Sanjay Gajendra.
“Our collaboration with NVIDIA enables greater flexibility for XPU connectivity through NVLink Fusion-enabled solutions. With NVLink Fusion support, our custom connectivity solutions will be engineered to sustain multiple terabytes per second of low-latency data throughput and are expected to be additive to our overall footprint in next-generation heterogeneous AI infrastructure,” he added.
4. Hut 8 Corp. (NASDAQ:HUT)
Hut 8 fell for a second day on Tuesday, shedding 13.52 percent to close at $37.68 apiece as investors took path from American Bitcoin’s 51-percent intra-day drop.
American Bitcoin is a majority-owned subsidiary by Hut 8 Corp. (NASDAQ:HUT), which plunged following announcements that the locked-up shares of the company became eligible for trading.
Additionally, presidential son Eric Trump—who also co-founded American Bitcoin—said in a social media post on the same day that the sell-off was due to investors exercising their options to “cash in on their profits for the first time, which is why we will see volatility.”
Investors, however, turned cautious, with the sentiment spilling over to Hut 8 Corp. (NASDAQ:HUT).
“I’m holding all my @ABTC shares—I’m 100 percent committed to leading the industry,” Trump added.
As of writing, the prices of Bitcoin were up by 1.31 percent to the $92,000 level, but remained down by 14.20 percent in the past 30 trading days.
3. IREN Ltd. (NASDAQ:IREN)
IREN Ltd. declined by 15.20 percent on Tuesday to close at $41.12 apiece as investor sentiment was dampened by announcements that it plans to raise more than $2.3 billion in fresh funds from the issuance of convertible senior notes and new shares.
In a statement on the same day, IREN Ltd. (NASDAQ:IREN) said that it would issue two series of convertible senior notes worth $1 billion each—one due 2032, while the other one to mature in 2033.
Noteholders for each series have the option to buy more notes up to an additional $150 million each, for a total of $300 million.
The notes are convertible into shares, which means they could result in a potential dilution to the shareholdings of existing shareholders.
IREN Ltd. (NASDAQ:IREN) said net proceeds from the offer will be used to repurchase a portion of existing convertible notes for cash, alongside other general corporate purposes, among others.
In addition, IREN Ltd. (NASDAQ:IREN) is also looking to issue new shares to raise funds to finance the buyback of old debt that is set to mature in 2029 and 2030.
2. Symbotic Inc. (NASDAQ:SYM)
Symbotic fell by 21.51 percent on Tuesday to close at $66.95 apiece as investors took path from an investment firm’s bearish rating and price target for its stock.
In a market note on the same day, Goldman Sachs issued a “sell” recommendation on shares of Symbotic Inc. (NASDAQ:SYM), alongside a new price target of $47. The figure marked a 30 percent downside potential from its latest closing price.
According to Goldman, the revision was based on its concerns for Symbotic Inc.’s (NASDAQ:SYM) customer base and cash flow projects.
Goldman said that while Symbotic Inc.’s (NASDAQ:SYM) technology was well received by retailing giant Walmart, with the latter securing systems for all 42 of its regional distribution centers, its number of independent customers has become limited in the past few years.
Additionally, the downgrade was sparked by the company’s relationship with GreenBox, with more than half of Symbotic Inc.’s (NASDAQ:SYM) $22.5 billion backlog coming from the former.
Symbotic owns 35 percent of GreenBox, while the remaining 65 percent is held by SoftBank.
1. American Bitcoin Corp. (NASDAQ:ABTC)
American Bitcoin declined by 38.83 percent on Tuesday to close at $2.19 apiece as investors were said to have taken profits for the first time.
In a social media post, presidential son and American Bitcoin Corp. (NASDAQ:ABTC) co-founder Eric Trump said that the sell-off was due to investors exercising their options to “cash in on their profits for the first time, which is why we will see volatility.”
“I’m holding all my @ABTC shares—I’m 100 percent committed to leading the industry,” Trump added.
American Bitcoin Corp.’s (NASDAQ:ABTC) drop also spilled over to its parent firm, Hut 8 Corp., shedding 13.52 percent on the same day.
In other recent news, American Bitcoin Corp (NASDAQ:ABTC) swung to a net profit of $3.47 million from a $576 million net loss in the same period last year. Revenues soared by 453 percent to $64.22 million from only $11.61 million year-on-year.
“The third quarter validated the thesis behind American Bitcoin,” said American Bitcoin Corp (NASDAQ:ABTC) Chief Strategy Officer and co-founder Eric Trump.
“While others paid spot, we generated Bitcoin below market through scalable, asset-light mining operations. Coupled with disciplined at-market purchases, we added more than 3,000 Bitcoin to our reserve. This dual strategy is how we intend to compound value for our shareholders and solidify our position as a capital-efficient platform for long-term Bitcoin accumulation,” he noted.
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