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.
8. Figma, Inc. (NYSE:FIG)
Figma saw its share prices decline by 6.24 percent on Wednesday to close at $81.91 apiece as investors began to take profits following two straight days of gains, after resolving an intellectual property dispute with Motiff.
The case stemmed from a September 2024 legal case filed by Figma, Inc. (NYSE:FIG) against Motiff and its affiliates for alleged breach of contract and copyright infringement.
Under the settlement agreement, Motiff will cease selling its current Motiff Editor Tool and will not sell any future products derived from it globally, with the exception of mainland China. In mainland China, Motiff may continue to sell its current Motiff Editor Tool for one year, while it reengineers and redesigns the product.
Motiff has also agreed to reimburse Figma, Inc.’s (NYSE:FIG) legal expenses.
“Figma is singularly focused on building the best possible product for our users. We welcome fair competition and strongly believe that no one should be allowed to copy our or others’ IP to gain an advantage. We are pleased to have reached a global settlement that aligns with Figma’s values and allows us to keep building for our customers and community without distraction,” a company spokesperson said.
7. Denison Mines Corp. (NYSEAmerican:DNN)
Denison Mines dropped its share prices by 6.48 percent on Wednesday to close at $2.02 apiece as investors soured on its planned $300 million fundraising program through the issuance of convertible senior notes.
In an updated statement, Denison Mines Corp. (NYSEAmerican:DNN) upsized its debt offering to $300 million from $250 million initially. The notes will carry a 4.25-percent yield per annum, to be paid semi-annually, and can be converted into cash, stocks, or both.
If converted into stock, noteholders will be able to receive 342.9 common shares for every $1,000 worth of notes held, equivalent to an initial conversion price of $2.92 apiece.
Denison Mines Corp. (NYSEAmerican:DNN) said the conversion price represents a premium of 35 percent from its closing price of $2.16 on August 12.
According to Denison Mines Corp. (NYSEAmerican:DNN), proceeds from the offer will be used to support the development of its uranium development projects, including the Wheeler River Uranium project, alongside other general corporate purposes.
The offer is expected to close on Friday, August 15, subject to certain closing conditions.
6. Core Scientific, Inc. (NASDAQ:CORZ)
Core Scientific snapped a seven-day winning streak on Wednesday, shedding 8.34 percent to close at $13.85 apiece as investors resorted to profit-taking to take advantage of the previous days’ gains while also in a wait-and-see mode for developments on its proposed merger with CoreWeave Inc.
This followed a major shareholder’s opposition against the two firms’ planned merger, saying that it was disappointed over the “inadequate valuation.”
Two Seas Capital, which owns approximately 6.5 percent of Core Scientific, Inc. (NASDAQ:CORZ) and is also a shareholder of CoreWeave, said that the merger “leaves Core Scientific shareholders exposed to the high volatility of CoreWeave’s share price with no protections on the value they will receive at or following close.”
“From our perspective as a shareholder … the proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk. In our view, the transaction decidedly and unfairly favors CoreWeave at the expense of Core Scientific shareholders,” it said.
Under the terms of the agreement, Core Scientific, Inc. (NASDAQ:CORZ) stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio.
5. Global-E Online Ltd. (NASDAQ:GLBE)
Global-E Online declined by 8.57 percent on Wednesday to close at $31.06 as investors resorted to early profit-taking after an intra-day surge, buoyed by a strong earnings performance in the second quarter of the year.
During the session, Global-E Online Ltd. (NASDAQ:GLBE) opened 8 percent higher than its previous day’s close, rose as high as 9 percent to $37.05, before traders booked profits to finish the day in the red.
In the second quarter of the year, Global-E Online Ltd. (NASDAQ:GLBE) swung to a net income attributable to shareholders of $10.49 million from a $22.44 million net loss in the same period last year. Revenues grew by 28 percent to $214.88 million from $168 million year-on-year.
In the first half, net loss narrowed by 86 percent to $7.36 million from $54.49 million in the same period last year, while revenues soared by 29 percent to $404.7 million from $313.88 million year-on-year.
Encouraged by the results, Global-E Online Ltd. (NASDAQ:GLBE) raised its growth outlook for the full-year period, with revenues now targeted at $921.5 million to $971.5 million, as compared with the $917 million to $967 million expected previously.
For the third quarter alone, revenues were pegged at $214 million to $221 million.
4. Maplebear Inc. (NASDAQ:CART)
Instacart owner Maplebear Inc. (NASDAQ:CART) fell by 11.51 percent on Wednesday to finish at $45.11 apiece as investors continued to take profits following its rally to a new high earlier in the week.
On Wednesday, the company also reported an impressive earnings performance, with net income attributable to shareholders in the second quarter of the year nearly doubling to $114 million from $58 million in the same period last year. Revenues also grew by 11 percent to $914 million from $823 million year-on-year.
In the first six months, attributable net income increased by 17 percent to $218 million from $186 million, while revenues grew by 10 percent to $1.8 billion from $1.64 billion year-on-year.
“We delivered another strong quarter, reinforcing the essential role we play in helping families save time, money, and effort putting food on the table,” said CEO Fidji Simo.
“Our strategy is working: we’re accelerating online grocery adoption by creating better customer experiences, deepening retailer partnerships, and leveraging our data in innovative ways — all while expanding profitability. Our unique scale and advantages allow us to build grocery technologies with partners in ways that competitors simply can’t match, and have us well-positioned to lead as AI transforms how people make decisions and manage their daily lives,” she added.
3. Centrus Energy Corp. (NYSEAmerican:LEU)
Centrus Energy extended its losing streak to a fourth straight day on Wednesday, slashing 13.77 percent to close at $187.44 apiece as investor sentiment was dampened by plans to raise $650 million in fresh funds from the issuance of convertible senior notes.
In a statement on Tuesday, Centrus Energy Corp. (NYSEAmerican:LEU) said the notes will have a tenor of 7 years and mature in 2032, unless earlier converted into cash or shares, or both.
The notes will carry interest rates and will be paid every 15th of February and August of each year, beginning February 2026, until the maturity date.
Additionally, it granted the initial buyers an option to purchase up to an additional $100 million within a 13-day period from the date the notes were first issued.
Centrus Energy Corp. (NYSEAmerican:LEU) said it plans to use the proceeds for general corporate purposes.
In other news, Centrus Energy Corp. (NYSEAmerican:LEU) announced the appointment of Todd Tinelli as its new chief finance officer, replacing Kevin Harrill, who stepped down to pursue other opportunities.
2. CAVA Group, Inc. (NYSE:CAVA)
CAVA Group fell by 16.63 percent on Wednesday to close at $70.45 apiece as investors soured on a slower-than-expected growth in same-store sales, pushing the company to lower its outlook.
In its earnings report, CAVA Group, Inc. (NYSE:CAVA) said it now expects same-store sales in the full-year period to grow by 4 to 6 percent, a marked reduction from the 6 to 8 percent growth as expected previously.
This followed a tempered same-store sales growth of only 2.1 percent in the second quarter of the year, falling short of the 6.25 percent as targeted by analysts.
According to CAVA Group, Inc. (NYSE:CAVA) CFO Tricia Tolivar, the industry was facing “a fluid macroeconomic environment and it’s one that sort of creates a fog for consumers where things are changing constantly and it’s hard to see the clear.”
“During those times, they tend to step off the gas,” she noted.
Tolivar said that while CAVA Group, Inc. (NYSE:CAVA) kicked off the second quarter with strong momentum, it saw a deceleration in same-store sales decline in June.
In the second quarter of the year, the company’s net income declined by 6.7 percent to $18.36 million from $19.7 million in the same period last year, albeit revenues were higher by 20 percent to $280.6 million versus the $233 million year-on-year.
1. CoreWeave, Inc. (NASDAQ:CRWV)
CoreWeave snapped a four-day winning streak on Wednesday, slashing 20.83 percent to close at $117.76 apiece as investors resorted to profit-taking following the previous days’ surge buoyed by a strong earnings performance, while digesting uncertainties surrounding its planned $9-billion merger with Core Scientific.
In an updated report, CoreWeave, Inc. (NASDAQ:CRWV) grew its revenues by 207 percent to $1.2 billion from only $395 million in the same period last year. This resulted in a 10-percent narrower net loss of $290.5 million as compared with the $323 million in the same period last year.
“Our strong second quarter performance demonstrates continued momentum across every dimension of our business,” said CoreWeave, Inc. (NASDAQ:CRWV) co-founder and Chairman Michael Intrator.
”We are scaling rapidly as we look to meet the unprecedented demand for AI. Our purpose-built AI cloud platform continues to set new benchmarks for performance and scalability, including becoming the first company to offer the complete Blackwell GPU portfolio at scale, making CoreWeave the platform of choice for the world’s most advanced AI workloads and AI pioneers,” he added.
In other developments, a major Core Scientific shareholder expressed opposition against the company’s planned merger with CoreWeave, Inc. (NASDAQ:CRWV), saying that it was disappointed over the “inadequate valuation.”
Two Seas Capital, which owns approximately 6.5 percent of Core Scientific, Inc. (NASDAQ:CORZ) and also a shareholder of CoreWeave, said that the merger “leaves Core Scientific shareholders exposed to the high volatility of CoreWeave’s share price with no protections on the value they will receive at or following close.”
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