Ten stocks kicked off the trading week with notable losses, as investors repositioned portfolios amid the generally cautious market environment brought about by the ongoing trade talks between the US and China.
The firms dropped harder than Wall Street’s major indices. The Nasdaq and S&P 500 both ended in the green, recording 0.31 percent and 0.09 percent gains. In contrast, the Dow Jones remained unchanged from Friday’s close.
In this article, we highlight the names of Monday’s worst-performing stocks and detail the reasons behind their drop.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and over 5 million in trading volume.
10. Oscar Health, Inc. (NYSE:OSCR)
Oscar Health dropped its share prices for a second day on Monday, shedding 4.28 percent to close at $14.76 following a rating downgrade from an investment firm.
On Monday, Piper Sandler lowered its price target for the company to $18 from $25 previously, but maintained its “overweight” rating on its stock. Still, the new price marked a 21.9-percent upside from its closing price on Monday.
Piper Sandler said the adjustment reflected potential policy changes from the Affordable Care Act (ACA) that could lower the number of people with health insurance, and which could significantly impact Oscar Health, Inc.’s (NYSE:OSCR) business.
According to the nonpartisan Congressional Budget Office, some 10.9 million people would lose health insurance benefits, including 1.4 million US immigrants without a legal status who are enjoying state-funded programs.
Piper Sandler said that Oscar Health, Inc.’s (NYSE:OSCR) current outlook guidance might have yet to fully reflect the risk adjustments from the policy changes.
9. Brookfield Asset Management Ltd. (NYSE:BAM)
Brookfield Asset Management shed 4.31 percent of its valuation, finishing Monday’s trading at $55.05 apiece as investors traded cautiously, while waiting for more concrete developments from the US-China trade talks.
Based on its historical price performance, Brookfield Asset Management Ltd. (NYSE:BAM) continued to trade sideways while waiting for fresh catalysts to boost investing appetite.
Last week, Brookfield Asset Management Ltd. (NYSE:BAM) announced plans to invest up to 95 billion Swedish crowns for the development of a data center for artificial intelligence in Sweden. The total amount represents one of its largest AI investments in Europe.
According to the company, it will sign a land allocation agreement for c.350,000 sqm of additional land, enabling the data center site to more than double its capacity from 300MW to 750MW.
The new site is expected to generate more than 1,000 new permanent jobs, as well as another 2,000 jobs to support the 10 to 15-year construction process. The facility will be the first of its kind in Sweden and one of the first in Europe.
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