Wall Street’s main indices suffered a bloodbath on Thursday as overall investor sentiment was weighed down by President Donald Trump’s series of tariffs on goods from other countries.

The Dow Jones dropped by 0.45 percent, while the S&P declined 1.59 percent. Nasdaq, on the other hand, lost 2.78 percent.

On Thursday, Trump threatened to slap EU products with a 25-percent tax, following his announcement on Wednesday of another month of delay for the imposition of taxes on goods from Mexico and Canada.

Ten companies also mirrored wider market pessimism, posting double-digit declines, albeit the drop was predominantly due to dismal earnings performance last year.

To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

10. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Credo dropped its share prices by 14.18 percent on Thursday to close at $52.6 apiece as investors sold off positions following the disposition of shares of the company’s chief operating officer.

In a regulatory filing, CRDO COO Lam Yat Tung announced selling $618,110 worth of shares in the company on Monday, February 24, at selling prices between $59.4 and $64.75 apiece. Following the sell-off, Lam’s ownership in the company decreased to 2.8 million direct shares and 1.1 million indirect shares through Zhan BVI Co Ltd.

The sales were carried out under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks. For his part, the trading plan was adopted by Lam in July 2024.

9. Hafnia Ltd. (NYSE:HAFN)

Hafnia saw its share prices decline by 14.6 percent on Thursday to finish at $4.21 apiece as investors sold off positions following a dismal earnings performance last year.

In its latest earnings release, HAFN said net income for the fourth quarter of 2024 dropped by 55 percent to $79.6 million from $176.4 million in the same period in 2023, while net profit for the full year dipped by 2.4 percent to $774 million from $793 million in 2023.

Revenues for the quarter declined by 24 percent to $532.86 million from $703.4 million year-on-year. Revenues for the full year, however, rose 7 percent to $2.868 billion from $2.671 billion.

According to the company, the product tanker market sustained higher earnings in the first nine months of last year, driven by strong cargo volumes and ton-miles as vessels rerouted from the Suez Canal to the Cape of Good Hope.

However, tanker rates came under pressure in the fourth quarter due to “increased cannibalization” from the crude sector.

8. Payoneer Global Inc. (NASDAQ:PAYO)

Payoneer declined by 14.73 percent on Thursday to end at $8.68 each as investor sentiment was dampened by its dismal earnings performance last year.

In the fourth quarter of 2024, net income declined by 33 percent to $18.2 million from $27 million, despite revenues increasing by 17 percent to $261.7 million from $224.3 million.

Net income for the full year, however, registered a 30-percent increase at $121.2 million last year versus $93.3 million in 2023, as revenues rose 18 percent to $977.7 million from $831.1 million in 2023.

Looking ahead, PAYO Chief Executive Officer John Caplan said that the company “will focus on expanding our regulatory moat, modernizing our technology infrastructure and further enhancing our financial stack, while seeking to deliver continued strong growth and profitability.”

For 2025, PAYO expects revenues to settle between $1.04 billion and $1.05 billion, with adjusted EBITDA ranging between $255 million and $265 million.

7. Pure Storage Inc. (NYSE:PSTG)

Pure Storage fell by 14.8 percent on Thursday to end at $53.20 apiece as investors sold off on the company’s disappointing earnings performance last year, shunning its optimistic outlook for this year.

In a statement, PSTG said net income in the fourth quarter dropped by 35 percent to $42.4 million from $65.4 million, despite revenues growing by 11 percent to $879.8 million from $789.8 million.

Meanwhile, net income during the full year increased by 75 percent to $106.7 million from $61 million a year earlier. Revenues also grew by 12 percent to $3.168 billion from $2.83 billion year-on-year.

For the next quarter, PSTG expects revenues to settle at $770 million or a growth rate of 11 percent year-on-year, while revenues for the next full year were pegged at $3.5 billion or an 11 percent increase from last year.

6. Viatris Inc. (NASDAQ:VTRS)

Viatris fell by 15.21 percent on Thursday to end at $9.53 apiece as investors sold off following a dismal earnings performance in 2024.

In its latest earnings release, VTRS swung to a net loss of $634.2 million in 2024 from a $54.7 million net income a year earlier. Meanwhile, revenues dipped by 4.5 percent to $14.7 billion from $15.4 billion.

The fourth quarter, however, posted an improvement, as net loss narrowed by 32.5 percent to $516.5 million from $765.6 million. However, revenues declined by 8 percent to $3.5 billion from $3.8 billion year-on-year.

Looking ahead, the company said it would conduct a share buyback program worth between $500 million and $650 million.

It targets revenues to settle between $13.5 billion and $14 billion, with an average of $13.75 billion.

5. Rush Street Interactive Inc. (NYSE:RSI)

Rush Street fell by 15.26 percent on Thursday to end at $11.27 apiece as investors appeared to have already priced in the company’s expected impressive earnings over earlier news that revenues from the online casino and gaming industry in 2024 soared to a new record, surpassing contributions from local and government agencies.

According to the American Gaming Association (AGA), American gaming reached an annual record of $71.92 billion in revenues last year, or a 7.5-percent increase from the $66.5 billion in 2023. The fourth quarter alone saw a new revenue record of $18.62 billion.

For its part, RSI swung to a net income of $6.5 million in the fourth quarter alone from a net loss of $5.45 million in the same period in 2023. It also posted a net income of $7.2 million in full-year 2024, reversing a net loss of $60.05 million in 2023.

Revenues for the quarter increased by 31 percent to $254.2 million from $193.9 million in the same period a year earlier, while revenues for the full-year period increased by 34 percent to $924.1 million from $691.2 million.

4. Super Micro Computer Inc. (NASDAQ:SMCI)

Super Micro fell by 15.97 percent on Thursday to finish at $42.95 apiece as investors resorted to profit-taking following a surge earlier in the week after meeting the February 25 deadline to keep its position as a listed company on Nasdaq.

In addition, an investment research company gave SMCI a pessimistic outlook, underscoring concerns about the strength of the business’s competitive moat and ongoing reputation issues tied to accounting concerns.

While Barclays acknowledged SMCI’s leadership position in the artificial intelligence industry, it said the company bears too much risk to give it a ‘buy’ rating.

In its delayed filing, SMCI said sales in fiscal year 2024 more than doubled to $14.99 billion year-on-year on the back of growing demand for its products to support artificial intelligence.

Earlier this month, SMCI said revenue could hit $40 billion in fiscal year 2026 after reaching $23.5 billion to $25 billion in 2025.

3. IonQ Inc. (NYSE:IONQ)

IonQ plummeted by 16.77 percent on Thursday to end at $24.91 apiece as investors sold off on disappointing earnings performance last year.

In its latest earnings release, IONQ widened its net loss in the fourth quarter of 2024 by 382 percent to $202 million from $41.9 million in the same period a year earlier, despite revenues nearly doubling to $11.7 million from $6.1 million.

In full-year 2024, net loss more than doubled to $331.6 million from $158 million in 2023, despite revenues expanding by 95 percent to $43 million from $22 million year-on-year.

The dismal performance overshadowed announcements that it acquired a controlling stake in Geneva-based ID Quantique. Alongside the transaction, IonQ expects to enter into a strategic partnership focused on quantum with SK Telecom, the largest wireless telecommunications operator in South Korea.

On the same day, IONQ also announced the entry of its new CEO, Niccolo de Masi, replacing Peter Chapman, who is set to assume the executive chair position.

2. Ambarella Inc. (NASDAQ:AMBA)

Ambarella fell by 17.13 percent on Thursday to end at $62.83 apiece as investors shunned news of impressive earnings performance last year.

In its latest earnings release, AMBA narrowed its net loss in three months ended January 2025 to $20.2 million from $60.6 million in the same period a year earlier, helped by a 63-percent higher revenue of $84 million versus $51.6 million year-on-year.

Net loss for the full year also shrunk by 30.7 percent to $117 million from $169 million year-on-year, while revenues increased by 26 percent to $284.8 million from $226 million in 2023.

AMBA, a semiconductor company, also earned a higher price target of $110 from Needham & Company LLC versus the $100 previously. It also maintained a “buy” rating for the company.

1. Vertex Inc. (NASDAQ:VERX)

Vertex nosedived by 18.98 percent on Thursday to finish at $34.54 apiece as investors sold off positions following a disappointing earnings performance last year.

In a statement, VERX swung to a net loss of $68 million in the fourth quarter of 2024 versus $15.3 million in the same period a year earlier, despite revenues growing by 15 percent to $178 million from $154.9 million year-on-year.

The company also widened its net loss by 302 percent in full-year 2024 at $52.7 million versus $13.1 million in 2023, despite full-year revenues growing by 16 percent to $666.8 million from $572 million year-on-year.

For the first quarter of the year, VERX expects revenues to settle between $175 million and $178 million, and between $760 million and $768 million in the full year alone.

While we acknowledge the potential of VERX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as VERX but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.