Ten stocks kicked off the first trading day of the month with a lagged performance, as investors digested industry developments that dampened investor appetite.
The stocks bucked the rally in the broader market, with all Wall Street indices finishing in the green.
Indices aside, we name the 10 worst-performing stocks on Monday and break down the reasons behind their performance.
To come up with the list, we considered the stocks with a market capitalization of $2 billion and 5 million shares in trading volume.
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10. Qualcomm Inc. (NASDAQ:QCOM)
Qualcomm snapped a two-day winning streak on Monday, shedding 8.78 percent to finish at $228.99 apiece, as investors resorted to profit-taking following the previous trading day’s record high, while digesting the impact of Nvidia Corp.’s foray into the devices market.
Over the weekend, Nvidia unveiled what it called the RTX Spark superchip, a new processor co-developed along with Microsoft, which is intended to cater to the devices market, including personal computers.
Nvidia’s entry posed a threat to Qualcomm Inc. (NASDAQ:QCOM), which produces the Snapdragon family of processors currently used by smartphones, tablets, and laptops, among other devices.
Nvidia said that its RTX Spark superchip is targeted for official launch in fall 2026 in Windows PCs such as Dell, HP, ASUS, Lenovo, and MSI.
RTX aside, the decline in shares of Qualcomm Inc. (NASDAQ:QCOM) can also be attributed to profit-taking after it hit an all-time high of $259.92 last Friday. The figure implied a growth of 44.7-percent from April’s $179.58 close.
In other news, Qualcomm Inc. (NASDAQ:QCOM) is set to pay $0.92 worth of dividends to all shareholders on record as of June 4, payable on June 25.
9. Planet Labs PBC (NYSE:PL)
Planet Labs dropped its share prices by 9.15 percent on Monday to end at $46.46 apiece, as investor funds fled the space sector following a rocket explosion during an engine test last week.
On Friday, Blue Origin’s New Glenn rocket exploded while undergoing a hot-fire engine test at its launch pad in Florida, sending shockwaves equivalent to a 2.5 magnitude earthquake.
Investors were quick to dispose of positions in space companies, including Planet Labs PBC (NYSE:PL), Rocket Lab Corp., and Intuitive Machines Inc., among others, amid caution over the safety of rocket launches.
The drop followed last week’s flurry of positive developments across the space industry after the National Aeronautics and Space Administration announced the awarding of contracts to a number of space players for its ambitious lunar exploration program. While Planet Labs PBC (NYSE:PL) does not directly benefit from the contracts, investors placed bets on the long-term program’s growth spillover potential to other key players.
In other news, Planet Labs PBC (NYSE:PL) is set to release its financial and operating highlights for the first quarter of fiscal year 2027 after market close on Thursday, June 4. A conference call will be held to elaborate on the results and its outlook.
For the first quarter, Planet Labs PBC (NYSE:PL) earlier guided revenues of $87 million to $91 million, or an implied growth of 31.2 percent to 37 percent from the $66.3 million posted in the same period last year.
8. Cerebras Systems Inc. (NASDAQ:BRS)
Cerebras extended its losing streak to a third consecutive day on Monday, shedding 10 percent to end at $213.28 apiece, as investors disposed of positions to take advantage of profits, while digesting the lack of positive developments to boost buying appetite.
Cathie Wood-led ARK Invest remained bullish about the stock despite the drop, having announced on Monday that it made another round of acquisitions, the most recent being the purchase of 62,669 new shares for a total of $14.85 million.
Cerebras Systems Inc. (NASDAQ:BRS) has already slashed as much as 81 percent of its value since it joined the roster of publicly listed companies on May 14.
During its initial public offering, it was able to raise $5.5 billion in fresh funds following the successful sale of 30 million shares at a price of $185 apiece.
Cerebras Systems Inc. (NASDAQ:CBRS) said that it would use the proceeds to fund general corporate purposes, including working capital, operating expenses, and capital expenditures.
The balance may also be used to in-license, acquire, or invest in complementary technologies, assets, businesses, or intellectual property, among others.
7. Summit Therapeutics Inc. (NASDAQ:SMMT)
Summit Therapeutics soared by 10.43 percent on Monday to end at $15.71 apiece, after an investment firm reiterated a pessimistic coverage for its stock.
In a market note during the day, Bernstein reaffirmed its underperform rating for Summit Therapeutics Inc. (NASDAQ:SMMT) alongside a $7.70 price target, marking a 51 percent discount from its latest closing price.
The investment firm said that the coverage reflected expectations of a non-statistically significant overall survival trend for the biopharmaceutical company’s Harmoni-6 trial. It earlier suggested that investors dispose of positions or initiate short positions where necessary.
In other news, Summit Therapeutics Inc. (NASDAQ:SMMT) over the weekend announced positive overall survival results from the Phase 3 trial to test the efficacy of Ivonescimab in China. The trial was sponsored by its partner, Akeso Inc.
In the study, patients who received Ivonescimab combined with chemotherapy lived significantly longer than those who received tislelizumab plus chemotherapy.
The study also showed that the death risk was slashed by 34 percent compared with tislelizumab, and that the overall survival was seen across different patient groups, including those with high and low PD-L1 expression.
Two years after, Summit Therapeutics Inc. (NASDAQ:SMMT) said that patients treated with ivonescimab were still alive, versus the 48.6 percent in patients treated with tislelizumab.
6. Wolfspeed Inc. (NYSE:WOLF)
Wolfspeed dropped its share prices by 10.68 percent on Monday to close at $52.95 apiece, as investors resorted to profit-taking to take advantage of last month’s whopping gains, having more than doubled its share price from April levels.
Last month, Wolfspeed Inc. (NYSE:WOLF) saw its share prices climb to an intra-month high of $80.70, marking a growth of 173 percent from only $29.53 in the last trading day of April. It finished May up at $52.95, representing a 100 percent climb from the month prior.
The surge was primarily bolstered by development surrounding the company, including its launch of new power modules to support the needs of the artificial intelligence sector.
It also announced efforts to lure more customers with the launch of a dedicated data center solutions team and regional office in the San Francisco Bay Area to enable closer alignment with leading hyperscalers, ODMs, and the entire ecosystem to build differentiated products and solutions for AI and other data center applications.
“The sheer scale of AI computing demands a fundamental rewrite of data center power architecture,” Wolfspeed Inc. (NYSE:WOLF) CEO Robert Feurle said.
“Moving to higher voltages is no longer optional—it’s a necessity. With our new data center solutions team at the epicenter of tech innovation, Wolfspeed is uniquely positioned to deliver the high-voltage solutions our hyperscaler and ODM partners need to build the efficient data centers of tomorrow,” he noted.
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