Ten firms were heavily sold down on Tuesday, dominated by Chinese companies amid renewed calls to delist the concerned firms from the US stock exchanges.
The drop defied a broader market optimism, with Wall Street’s major indices finishing with strong gains during the day on news that the US and European Union are ramping up trade negotiations.
The tech-heavy Nasdaq was up the most by 2.47 percent. The S&P 500 followed with a 2.05 percent increase, while the Dow Jones grew 1.78 percent.
In this article, let us focus on the performance of the 10 worst performers and explore the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.
10. Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers Health saw its share prices drop by 2.68 percent to close at $53.36 apiece as investors sold off positions amid the lack of catalyst to boost buying appetite.
Just recently, Hims & Hers Health Inc. (NYSE:HIMS) announced a new promotion for the blockbuster weight loss drug Wegovy.
According to the company, eligible customers are now able to access six months of “prescription-only” Wegovy at a new and affordable price for $549 per month. The promotion is currently offered for a limited time.
It can be learned that Wegovy was among the drugs that Hims & Hers Health Inc. (NYSE:HIMS) created a knockoff version following the supply shortage over the past few years.
In the first quarter of the year, Hims & Hers Health Inc. (NYSE:HIMS) said net income expanded by 344 percent to $49.48 million from the $11.13 million registered in the same period last year.
Revenues increased by 111 percent to $586 million from $278 million year-on-year.
9. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
ZIM Integrated dropped its share prices by 2.88 percent on Tuesday to finish at $17.53 apiece as investors sold off positions while digesting the company’s cautious business outlook for the rest of the year.
“As we look toward the remainder of the year, the operating environment is highly uncertain, driven by a range of factors impacting global trade and economic expectations. For ZIM, our focus is on controlling what we can and responding to market shifts quickly with decisive actions,” said ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) President and CEO Eli Glickman.
“We continuously assess how to best allocate capacity and have taken steps to modify our network to match the changes in cargo flow from China and other Southeast Asian markets into the United States, including within the last week, which underscores the agile nature of our commercial strategy.”
In recent news, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) said net income increased by 222 percent to $296 million from $92 million in the same period last year.
Revenues grew by 28 percent to $2.01 billion from $1.56 billion year-on-year.
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