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.
8. Rubrik, Inc. (NYSE:RBRK)
Rubrik Inc. declined for a second day on Monday, losing 4.86 percent to finish at $93.15 apiece as investors continued to reposition portfolios while waiting for more concrete developments from the ongoing US-China trade talks.
Last week, Rubrik, Inc. (NYSE:RBRK) earned a bullish rating from Roth Capital Markets, giving the firm a “buy” recommendation and a price target of $107, higher by 10.3 percent than its previous target of $97.
The new price represented 14.86 percent upside from the company’s closing price on Monday.
According to Roth Capital, the more bullish rating reflected Rubrik, Inc.’s (NYSE:RBRK) strong earnings performance in the first quarter of fiscal year 2026.
During the period, Rubrik, Inc. (NYSE:RBRK) narrowed its net losses by 86 percent to $102 million from $732 million registered in the same period last year.
Revenues increased by 48.66 percent to $278 million from $187 million year-on-year.
7. Applied Digital Corporation (NASDAQ:APLD)
Applied Digital dropped its share prices by 6.06 percent on Monday to finish at $13.02 apiece as investors sold off positions while waiting for more concrete developments from the US-China trade talks.
Last week, Applied Digital Corporation (NASDAQ:APLD) earned a boost from two 15-year lease contracts with CoreWeave, Inc. (NASDAQ:CRWV), under which the former will deliver 250 megawatts of critical IT load to host the latter’s artificial intelligence (AI) and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus.
Monday’s performance, however, suggested that the news had already been priced in by investors, and that they are now looking for more catalysts to boost buying appetite.
Pursuant to the lease contracts, CoreWeave, Inc. (NASDAQ:CRWV) also retains the option to access an additional 150 MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads.
Applied Digital is expected to deliver the first 100 MW of data center in the fourth quarter of the year, while the remaining 150 MW is expected to come online in the middle of 2026.
6. Primo Brands Corporation (NYSE:PRMB)
Primo Brands saw its share prices decline by 6.10 percent on Monday to close at $29.56 apiece as investors sold off positions following the payout of cash dividends.
On Monday, shareholders of Primo Brands Corporation (NYSE:PRMB) received a $0.1 dividend for each share of the company.
However, Monday’s drop reflected cautious trading across the broader market pending concrete developments from the ongoing US-China trade talks.
Last week, Primo Brands Corporation (NYSE:PRMB) earned a “buy” recommendation from Bank of America, with a price target of $42, or a 42-percent upside from its last closing price.
According to Bank of America, the optimistic outlook was based on expectations that shares of Primo Brands Corporation (NYSE:PRMB) will appreciate over the next 12 months “as it delivers cost synergies ($300mm of EBITDA by 2026).”
If the current multiple holds, this should lead to enterprise/equity value accretion,” the investment firm said.
5. PG&E Corporation (NYSE:PCG)
PG&E Corporation extended its losing streak to a seventh consecutive day on Monday, touching a new all-time low as investor sentiment was dented by its ongoing financial and operational hurdles.
PG&E Corporation (NYSE:PCG) fell to a new 52-week low of $14.56 before slightly pulling up to end the day just down by 6.78 percent at $14.58 apiece.
Monday’s trading was partly influenced by a rating downgrade from Wolfe Research, having lowered its price target to $19 from $22 previously, as well as the decrease in natural gas prices during the day.
Wolfe Research, however, maintained an “outperform” rating for the company’s stock.
PG&E Corporation (NYSE:PCG) is one of the largest utility companies in the US. It provides natural gas and electric service to approximately 16 million people throughout a 70,000-square-mile service area in northern and central California.
4. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Sarepta Therapeutics declined by 7.67 percent on Monday to close at $39.71 each as investors unloaded portfolios amid the generally cautious market environment, while waiting for concrete developments from the ongoing US-China trade negotiations.
Additionally, investors may have sold off positions following the previous day’s gains, boosted by Scotiabank’s rating upgrade for its stock to “outperform” from “sector perform” previously.
The upgrade represented a vote of confidence amid the stock’s 68-percent year-to-date drop, dented by safety concerns linked to the death of a young male from taking its Elevidys drug.
Additionally, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) reported a disappointing earnings performance in the first quarter of the year, having swung to a net loss of $447.5 million from a $36.1 million net income in the same period last year, despite revenues jumping by 80 percent to $744.9 million from $413.5 million year-on-year.
Looking ahead, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) said it expects lower revenues for full-year 2025, at $2.3 billion to $2.6 billion versus the $2.9 billion to $3.1 billion as expected previously.
3. Edison International (NYSE:EIX)
Edison International dropped its share prices hit a new all-time low on Monday, following a rating downgrade from an investment firm.
At intra-day trading, Edison International (NYSE:EIX) touched a new 52-week low of $48.39 before a slight buying raised its price higher to end the day just down by 8.07 percent at $49.42 apiece.
The drop followed Wolfe Research’s significant downgrade on the company’s stock to “peer perform” from “outperform” previously over uncertainties from the ongoing litigation, as well as potential liabilities in relation to the Eaton fire in California in January this year.
Further dampening sentiment were news reports that the company’s subsidiary, Southern California Edison—which covers and energizes the wildfire-affected area—has underestimated the potential size of the incident by a factor of ten.
It can be learned that Edison International (NYSE:EIX) has been linked to the Los Angeles wildfire that claimed dozens of lives and resulted in billions worth of damages.
The company was under public scrutiny due to a potential connection to the wildfire after discovering a downed conductor at a tower near the area where the Hurst Fire broke out on Tuesday evening.
2. AppLovin Corporation (NASDAQ:APP)
AppLovin dropped its share prices by 8.21 percent on Monday to finish at $383.60 apiece as investor sentiment was dampened by its non-inclusion in the S&P 500 rebalancing.
The drop followed earlier optimism from Bank of America and Barclays, which expected AppLovin Corporation (NASDAQ:APP) to join the S&P 500’s recent rebalancing.
The analysts expected AppLovin Corporation’s (NASDAQ:APP) inclusion in the index after meeting the criteria of at least $20.5 billion in market value and GAAP profitability over the past four quarters.
Getting included in the S&P 500 can be advantageous to stock components as it exposes them to a wider group of investors.
In the first quarter of the year, AppLovin Corporation (NASDAQ:APP) expanded its net income by 144 percent to $576 million from $236 million in the same period last year.
Revenues increased by 40 percent to $1.48 billion from $1.058 billion year-on-year.
1. EchoStar Corporation (NASDAQ:SATS)
EchoStar Corporation lost 8.52 percent of its valuation on Monday to close at $15.99 apiece as investor sentiment continued to be dampened by reports of the company’s potential bankruptcy filing.
This followed the recent notification from the Federal Communications Commission (FCC) that it was underway with the review of its compliance with certain federal obligations to provide 5G service in the US, raising concerns regarding its buildout extension and mobile-satellite service utilization in the 2 GHz band.
Further dampening the sentiment was the EchoStar Corporation’s (NASDAQ:SATS) intentional move not to settle worth $326 million of interest payments for one of its senior notes, saying that its ongoing battle with the FCC froze its ability to make decisions.
The move sparked concerns among investors about the company’s potential filing for bankruptcy protection.
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