Ten big names ended Thursday’s trading on a lackluster performance, mirroring two of Wall Street’s major indices, as investors digested more corporate earnings, among others.
Meanwhile, only the Dow Jones finished in the green during the session, inching up 0.03 percent. The Nasdaq and the S&P 500 both fell by 1.18 percent and 0.54 percent, respectively.
In this article, we name the 10 worst-performers on Thursday and detail the reasons behind their drop.
To come up with the list, we focused exclusively on the stocks with a $2 billion market capitalization and 5 million shares in trading volume.
Source: Pexels
10. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Applied Optoelectronics saw its share prices drop by 7.62 percent on Thursday to close at $53.69 apiece, as investors priced in a strong earnings performance last year, while taking profits after a five-day gain.
In an updated report, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that it narrowed its net loss last year by 80 percent to $38.2 million from $186.7 million in 2024, as total revenues soared by 83 percent to $455.7 million from $249 million.
In the fourth quarter alone, net loss shrank by 98 percent to just $2.02 million from $119.7 million in the same period a year earlier. Total revenues also increased by 33.9 percent to $134.27 million from $100.27 million.
“We are pleased to deliver record fourth quarter results that were in line with or better than our expectations, and which capped off the strongest year in our company’s history,” Applied Optoelectronics Inc. (NASDAQ:AAOI) President and CEO Thompson Lin said.
“Our results were driven by broad-based demand in both our CATV and datacenter businesses. We have considerable momentum entering 2026, and we believe we are well-positioned to accelerate our growth this year,” he added.
For the first quarter of the year, Applied Optoelectronics Inc. (NASDAQ:AAOI) expects revenues to grow by 50 to 66 percent to a range of $150 million to $165 million.
9. Fermi Inc. (NASDAQ:FRMI)
Fermi snapped a two-day run on Thursday, shedding 7.97 percent to finish at $10.85 apiece, as investors resorted to profit-taking following a whopping 31-percent jump in just the past two trading days of the week.
The recent surge was bolstered by an analyst’s maintained “buy” recommendation for the stock, despite lowering its price target to $35 from $37 previously.
The issuance also overshadowed an ongoing class action lawsuit against Fermi Inc. (NASDAQ:FRMI) by shareholder law firms in relation to alleged misinformation about company developments, including misinformation about tenant demand for the 11-GW Project Matador project campus; that the project would only rely on a single tenant’s funding commitment to finance the construction; and significant risks that the tenant would terminate the funding commitment, among others.
Fermi Inc. (NASDAQ:FRMI) is underway with the Front-End Engineering Design activities for the project, including site layout planning, cooling system evaluations, and cost and schedule development.
It recently raised as much as $500 million from the debt market for the development of Project Matador, and support its target of delivering an initial 2.3 GW of power.
8. DigitalOcean Holdings Inc. (NYSE:DOCN)
DigitalOcean dropped its share prices by 8.45 percent on Thursday to close at $54.26 apiece as investors continued to take profits to take advantage of last week’s record high.
Prior to DigitalOcean Holdings Inc.’s (NYSE:DOCN) earnings performance, the stock soared to a four-year high of $70.43 last week, reflecting as much as a 27 percent jump in the month of February alone.
Last Tuesday, the company reported its earnings performance for 2025, with full-year net income attributable to shareholders more than tripling to $259 million from $84 million in 2024. Revenues also increased by 15.5 percent to $901 million from $780.6 million year-on-year.
In the fourth quarter alone, attributable net profit climbed by 40.4 percent to $25.66 million from $18.27 million in the same period a year earlier, while revenues jumped by 18 percent to $242.39 million from $204.9 million.
For this year, DigitalOcean Holdings Inc. (NYSE:DOCN) expects total revenues to break past the $1 billion territory, at $1.075 billion to $1.105 billion, or an implied growth of 19 to 22.6 percent year-on-year.
Following the results, Morgan Stanley raised its price target for DigitalOcean Holdings Inc. (NYSE:DOCN) by 34 percent to $75 from $56 previously, while maintaining an “overweight” rating, saying that the latter’s previous strategic initiatives are starting to drive growth results.
7. AXT Inc. (NASDAQ:AXTI)
AXT Inc. snapped a two-day rally on Thursday, shedding 9.40 percent to finish at $37.12 apiece, as investors resorted to profit-taking after soaring to a 25-year high in the previous trading day.
It can be recalled that the stock soared to a record high of $41.19 on Wednesday, a level it last touched in September 2000, as investors took heart from a strong earnings performance last year, while cheering progress on its export permits that are expected to bolster revenue performance in the first quarter of the year.
“While we are disappointed that we didn’t receive as many export permits in Q4 as we had hoped, we are pleased to report that we have received some permits to date in 2026 and believe we are in a strong position to achieve sequential revenue growth in Q1, driven primarily by growth in indium phosphide for the AI infrastructure build-out,” AXT Inc. (NASDAQ:AXTI) CEO Morris Young said.
“As we enter 2026 as a foundational supplier to this multi-year growth cycle, we are notably broadening our customer base to include Tier-1 companies to which we have previously had limited exposure. We are also on track to double our indium phosphide manufacturing capacity this year and have a strong balance sheet to support our continued business expansion.”
Last year, AXT Inc. (NASDAQ:AXTI) widened its attributable net loss by 83 percent to $21.26 million from $11.6 million in 2024. Revenues also declined by 11 percent to $88 million from $99 million year-on-year.
In the fourth quarter alone, attributable net loss narrowed by 31 percent to $3.5 million from $5.09 million, while revenues dropped by 8 percent to $23 million from $25 million.
6. Nu Holdings Ltd. (NYSE:NU)
Nu Holdings dropped its share prices by 9.55 percent on Thursday to close at $15.06 apiece, as investors have already priced in a strong earnings performance last year.
In an earnings call on Wednesday, Nu Holdings Ltd. (NYSE:NU) said that it grew its attributable net income by 46 percent to $2.87 billion from $1.97 billion in 2024 while total revenues increased by 39.67 percent to $16.3 billion from $11.67 billion in the same comparable period.
In the fourth quarter alone, net income increased by 62 percent to $894.8 million from $552.6 million, while total revenues surged by 56.6 percent to $4.857 billion from $3.1 billion.
“In Q4’25, we increased scale, deepened engagement, and expanded profitability, closing the year with 131 million customers and 17 million net adds in 2025, while ARPAC (average revenue per active customer) reached $15. Strong engagement and higher monetization drove record quarterly revenues of $4.9 billion. This performance, combined with operating leverage and disciplined risk management, resulted in an all-time high net income of $895 million and a ROE (return on equity) of 33 percent,” said Nu Holdings Ltd. (NYSE:NU) CEO David Velez.
“As we enter 2026, we remain fully focused on winning in Latin America, while building the capabilities that will allow Nubank to evolve into a global digital banking platform over time,” he added.
5. Everpure (NYSE:PSTG)
Everpure slashed its share prices by 10.30 percent on Thursday to finish at $65.98 apiece, as investors took early profits following the release of a strong earnings performance in fiscal year 2026.
In an earnings call, Everpure (NYSE:PSTG) said that it grew its net income for the full fiscal year by 76 percent to $188 million from $106.7 million, while revenues jumped by 15 percent to $3.66 billion from $3.17 billion.
In the fourth quarter alone, net income more than doubled to $100 million from only $42 million, while total revenues surged by 20 percent to $1.058 billion from $879 million.
“Everpure delivered an outstanding fourth quarter, achieving our first billion-dollar revenue quarter and capping off a strong fiscal year,” said Everpure (NYSE:PSTG) Chairman and CEO Charles Giancarlo.
“These results prove our impact in modernizing data storage. Our new name ‘Everpure’ represents the next step in our mission—enabling our customers to better manage and utilize their global data in the AI era,” he noted.
For the full fiscal year 2027, Everpure (NYSE:PSTG) is targeting to grow its revenues by 17 to 20 percent to a range of $4.3 billion to $4.4 billion, while targeting a 27 to 30 percent jump in revenues for the first quarter, to a range of $990 million to $1.01 billion.
4. Zoom Communications Inc. (NASDAQ:ZM)
Zoom Communications fell by 11.58 percent on Thursday to finish at $75.54 apiece, as investors appeared to have taken profits following the previous days’ surge—thanks to its strong earnings performance in the fiscal year 2026.
During the period, Zoom Communications Inc. (NASDAQ:ZM) said that net profit surged by 88 percent to $1.9 billion from $1.01 billion in fiscal year 2025, while total revenues grew by 5.7 percent to $3.7 billion from $3.5 billion, on the back of a 6.5 percent growth in enterprise revenues, and a 1.2 percent uptick in online revenues.
In the fourth quarter alone, net income increased by 83 percent to $674 million from $367.86 million, while total revenues grew by 5.2 percent to $1.246 billion from $1.184 billion, thanks to a 7.1 percent growth in enterprise revenues and a 2.6 percent increase in online revenues.
“In Q4, we saw accelerating, high-double-digit growth in Zoom Customer Experience, with paid AI included in each of our top 10 CX deals, underscoring the value of live context and automated follow-through. As we enter FY27, we expect to surpass the $5 billion revenue milestone and remain focused on delivering durable, profitable growth and long-term shareholder returns,” said Zoom Communications Inc. (NASDAQ:ZM) CEO Eric Yuan.
Encouraged by the results, Zoom Communications Inc. (NASDAQ:ZM) is targeting full-year 2027 revenues between $5.065 billion and $5.075 billion, while revenues in the first quarter are projected at $1.22 billion to $1.225 billion.
3. FS KKR Capital Corp. (NYSE:FSK)
FS KKR Capital snapped a two-day rally on Thursday, slashing 15.24 percent to finish at $11.29 apiece, as investor sentiment was dampened by a 31-percent cut in its quarterly dividends beginning in the first quarter of the year.
In an updated report, FS KKR Capital Corp. (NYSE:FSK) said that it would pay a $0.48 per share dividend to its shareholders on record as of March 18, 2026, markedly lower than the usual $0.70 dividend distributed per quarter.
The dividends are scheduled for payment on April 2.
This followed dismal earnings performance last year, with net investment income falling by 19.5 percent to $654 million from $813 million. Total investment income also declined by 11.7 percent to $1.5 billion from $1.7 billion.
“As we conclude 2025 and begin looking forward to 2026, we acknowledge specific challenges associated with a few investments that impacted our results during the second and fourth quarters of the year,” said FS KKR Capital Corp. (NYSE:FSK) Chairman and CEO Michael Forman.
“Looking ahead to 2026, our investment team will be working diligently to stabilize these investments while continuing to focus on high-quality new originations, primarily in first lien senior secured structures, as we continue to diversify our investment portfolio,” he added.
2. Shift4 Payments Inc. (NYSE:FOUR)
Shift4 fell to a new two-year low on Thursday, as investor sentiment was dented by a 65-percent plunge in its attributable profits last year.
At intra-day trading, the stock dropped to its lowest price of $46.26 before paring losses to finish the session just down by 15.62 percent at $48.41 apiece.
In an updated report, Shift4 Payments Inc. (NYSE:FOUR) said that its net income attributable to shareholders nosedived to $79 million last year from $230 million in 2024, despite gross revenues increasing by 25 percent to $4.18 billion from $3.33 billion.
In the fourth quarter alone, net profit attributable to shareholders declined by 78 percent to $25 million from $116 million, while gross revenues increased by 34 percent to $1.189 billion from $887 million.
Encouraged by strong revenue results, Shift4 Payments Inc. (NYSE:FOUR) is targeting gross revenue growth of 26 to 31 percent in full-year 2026, to a range of $2.5 billion to $2.6 billion, while adjusted EBITDA is pegged at $1.165 billion to $1.215 billion, or an implied growth of 20 to 25 percent year-on-year.
In the first quarter, gross revenues are expected to hit $548 million, while adjusted EBITDA is targeted at $233 million, or growth of 38 percent year-on-year.
1. Eos Energy Enterprises Inc. (NASDAQ:EOSE)
Eos Energy fell by 39.44 percent on Thursday to finish at $6.74 apiece, as investors turned cautious after nearly doubling its losses last year.
In its earnings call, Eos Energy Enterprises Inc. (NASDAQ:EOSE) said that net loss attributable to common shareholders widened by 80 percent to $1.7 billion from $964 million in 2024, despite revenues soaring by 631 percent to $114 million from $15.6 million.
Revenues were driven by scaled production of the company’s first-generation highly automated manufacturing process, alongside a 609 percent increase in customer deliveries.
However, the fourth quarter saw a 46 percent narrower net loss at $258.6 million versus $481.5 million, while revenues soared by 705 percent to $58 million from $7.2 million, driven by efficiency and quality improvements in multiple operations and implementation of subassembly automation.
“2025 was a structural turning point for Eos. We accelerated production, expanded annual capacity to 2 GWh, delivered record quarterly revenue, strengthened our cash position to over $600 million, and secured more than $240 million in fourth quarter bookings across diversified markets,” Eos Energy Enterprises Inc. (NASDAQ:EOSE) CEO Joe Mastrangelo said.
“While disappointed in not meeting revenue expectations, execution improved significantly as 2025 progressed, and we exited the year with clear operational momentum,” he noted.
For this year, Eos Energy Enterprises Inc. (NASDAQ:EOSE) is targeting revenues between $300 million and $400 million, or an implied growth of 163 to 251 percent.
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