Ten stocks were in a bloodbath on Wednesday, defying a broader market optimism, as investors reacted negatively to a series of catalysts, including weak corporate earnings and uncertainties of partnerships, among others.
Meanwhile, the Dow Jones rose by 1.04 percent, the S&P 500 grew 0.32 percent, while the Nasdaq inched up by 0.14 percent.
In this article, we name the 10 worst-performing stocks on Wednesday and detail the reasons behind their declines.
To compile the list, we focused exclusively on stocks with $2 billion in market capitalization and at least 5 million shares in trading volume.
A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels
10. Circle Internet Group Inc. (NYSE:CRCL)
Circle Internet snapped a three-day winning streak on Wednesday, shedding 6.16 percent to close at $153.16 apiece following an investment firm’s pessimistic rating on the stock and a new round of share sale.
In its market note, Mizuho lowered its price target for Circle Internet Group Inc. (NYSE:CRCL) to $84 from $85 and maintained an “underperform” rating, only a month after initiating coverage on the stock.
The revision was based on the significant gap between Circle Internet Group Inc.’s (NYSE:CRCL) USDC growth target of 40 percent CAGR versus its quarter-to-date growth of only 6 percent.
Additionally, it noted the significant increase in distribution costs, which could potentially squeeze profit margins.
Mizuho also underscored an expected cut-throat competition in the stablecoin industry, given the surge of interest from companies. Notably, its biggest rival, Tether, announced plans to reenter the US markets following the passage of the GENIUS Act.
Lastly, investors reacted negatively to a new round of share sale, involving 10 million units, that could result in the dilution of existing shares. Of the total, 2 million will come from Circle Internet Group Inc. (NYSE:CRCL) while the larger 8 million will be offered by certain shareholders.
9. Nebius Group N.V. (NASDAQ:NBIS)
Nebius Group ended a four-day gain on Wednesday, losing 6.24 percent to close at $70.63 apiece as investors resorted to profit-taking following its rally to a new high earlier this week.
In just the two trading weeks of the month, Nebius Group N.V. (NASDAQ:NBIS) already saw its share price increase by 39 percent, reflecting strong confidence among investors, supported by a stellar earnings performance in the second quarter of the year.
During the period, Nebius Group N.V. (NASDAQ:NBIS) said it swung to a net income from continuing operations of $502.5 million from a $116.9 million net loss in the same period last year.
Revenues soared by 625 percent to $105.1 million from $14.5 million in the same period last year.
In the first half, the company ended at a net income of $398.2 million, reversing a $185.5 million net loss in the same comparable period. Revenues jumped by 545 percent to $156 million from $24.2 million year-on-year.
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