Ten stocks lost their steam on Wednesday, shedding significant losses during the session amid a flurry of company-specific developments that dampened investing appetite.
Meanwhile, only the Dow Jones finished in the red among Wall Street’s indices, down 0.48 percent. The S&P 500 and the tech-heavy Nasdaq grew 0.30 percent and 0.03 percent, respectively.
In this article, we name Wednesday’s 10 worst performers and detail the reasons behind their drop.
To come up with the list, we considered the stocks with at least $2 billion in market capitalization and 5 million shares in trading volume.
Stock market data. Photo by Jakub Zerdzicki on Pexels
10. iQIYI Inc. (NASDAQ:IQ)
Shares of iQIYI dropped by 6.81 percent on Wednesday to close at $2.6 apiece as funds shifted to artificial intelligence, while investors continued to digest trade tensions anew between the US and China.
Earlier this week, China warned the US over attempts to interfere in its issues on Taiwan and the South China Sea, saying that any move by Washington will be thwarted by Beijing. The fresh warnings weighed down on investor sentiment for Chinese companies.
Additionally, several Chinese firms staged plans to pursue secondary listing on the Hong Kong Stock Exchange (HKEX) over fears of getting delisted from the US stock markets, suggesting that concerns on the two countries’ strained relations lingered.
According to reports, iQIYI Inc. (NASDAQ:IQ) is underway with an initial public offering on the HKEX, which could raise the company up to $300 million in fresh funds. An official application is targeted to be filed by the end of the third quarter.
A report by Reuters, citing people privy to the matter, said that iQIYI, Inc. (NASDAQ:IQ) officially tapped Bank of America, JPMorgan, and China International Capital Corp. to work on its Hong Kong listing scheduled for February 2026.
9. Mobileye Global Inc. (NASDAQ:MBLY)
Mobileye ended two straight days of gains on Wednesday, shedding 6.85 percent to close at $13.88 apiece as investor sentiment was dampened by the European Union’s (EU) decision to partially pause a trade deal with Israel amid its ongoing conflict with Palestine.
On Wednesday, European Commission President Ursula von der Leyen called for the suspension of a free trade agreement with Israel, although she did not specify which products and industries would be affected.
Mobileye Global Inc. (NASDAQ:MBLY), an Israel-based firm, is particularly at risk if the automotive industry gets hit by the new trade policy, as any imposition of tariffs could weigh down on its profits and margins.
Three of Mobileye Global Inc.’s (NASDAQ:MBLY) key customers are based in Europe, including Volkswagen, BMW, and Stellantis.
In the second quarter of the year, Mobileye Global Inc. (NASDAQ:MBLY) narrowed its net loss by 22 percent to $67 million from $86 million in the same period last year. Revenues, however, grew by 15.26 percent to $506 million from $439 million year-on-year.
8. NIO Inc. (NYSE:NIO)
Shares of NIO Inc. fell by 8.92 percent on Wednesday to end at $5.72 apiece as investors unloaded positions following plans to raise $1 billion through an equity offering that could result in potential share dilution.
In a statement, NIO Inc. (NYSE:NIO) said it would issue more than 181.8 million Class A shares, from the offer of American depositary shares (ADS) in the US and ordinary shares in Hong Kong.
The ADSs are priced at $5.57 apiece, while the ordinary shares are offered at HK$43.36 apiece.
NIO Inc. (NYSE:NIO) said it expects to close the offering of ADS today, September 11, and the ordinary shares in Hong Kong on September 17, 2025.
In relation to the offer, NIO Inc. (NYSE:NIO) granted its underwriters a 30-day option to purchase up to 27.27 million ADS.
The company said proceeds from the offer will be allocated for investments in the research and development of core technologies for smart electric vehicles, developing future technology platforms and vehicle models across its brands, expanding its battery swapping and charging network, further strengthening its balance sheet, alongside other general corporate purposes.
7. Upstart Holdings, Inc. (NASDAQ:UPST)
Upstart snapped a four-day winning streak on Wednesday, shedding 9.43 percent to end at $62.42 apiece after its fellow “buy now, pay later” company, Klarna Group PLC (NYSE:KLAR), soared on its market debut.
On Wednesday, Klarna Group PLC opened at $57.2, also its highest during the day, before ending the day just up by 14.55 percent at $45.82 apiece. The newly listed firm also put pressure on shares of Affirm Holdings.
Klarna’s entry into the US market triggered concerns over heightened competition in the lending industry.
Further dampening sentiment was Upstart Holdings, Inc.’s (NASDAQ:UPST) 13.77-percent drop in net interest income in the second quarter of the year to $45.6 million from $52.88 million in the same period last year.
In the same period, Upstart Holdings, Inc. (NASDAQ:UPST) swung to a net income of $5.6 million from a $54.57 million net loss in the same period last year.
Total revenues more than doubled to $257.29 million from $127.63 million year-on-year.
6. The Trade Desk, Inc. (NASDAQ:TTD)
The Trade Desk fell by 11.95 percent on Wednesday to end at $46.14 apiece as investors took path from an investment firm’s downgrade of its stock.
In a market note, Morgan Stanley downgraded The Trade Desk, Inc. (NASDAQ:TTD) to “equalweight” from “overweight” previously and lowered its price target to $50 from $80.
According to Morgan Stanley, the revision was based on growing concerns about the company’s connected TV business, saying that they have been wrong about the durability of its growth amid execution concerns, softness in the open web ad market, and intensifying competition.
“TTD’s weaker-than-expected 3Q guidance of 14 percent revenue growth has reignited questions that first emerged with its 4Q:24 miss and implies continued challenges ahead,” the investment firm said.
Morgan Stanley also pointed to factors such as the increasing pushback from advertisers, as well as Amazon’s faster-than-expected advertising platform expansion, among others, having teamed up recently with Roku and Disney.
“Fundamental uncertainties, tough compares into ’26, and open web headwinds lead us to see limited upside and a more balanced risk reward from here,” the research firm said.
5. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Soleno Therapeutics dropped for a second day on Wednesday, shedding 14.52 percent to end at $60.01 apiece as investors turned cautious following the death of a patient who had been taking its Vykat XR drug.
In a regulatory filing, Soleno Therapeutics, Inc. (NASDAQ:SLNO) said it was made aware of a report by the Food and Drug Administration (FDA) that a 17-year-old patient succumbed, but stood firm that the death was not related to the intake of the Vykat XR drug.
“The treating physician has reported the case as not related to treatment with Vykat XR, and Soleno’s assessment is the same. This patient was a 17-year-old male with a history of co-morbidities, including lymphedema, superficial thrombophlebitis (treated and followed by a vascular surgery team), and obesity (326 lbs.) who died from an apparent pulmonary embolus,” Soleno Therapeutics, Inc. (NASDAQ:SLNO) said.
“Vykat XR has a proven safety and efficacy profile and was approved by the FDA following a rigorous clinical program. Like any medication, Vykat XR should be administered in accordance with its FDA-approved label, which describes anticipated side effects. Soleno Therapeutics is committed to reporting all adverse events experienced by individuals who have taken Vykat XR in accordance with applicable law,” it added.
4. Chewy, Inc. (NYSE:CHWY)
Shares of Chewy Inc. (NYSE:CHWY) fell by 16.6 percent on Wednesday to end at $35.11 apiece following a steep drop in its net income in the second quarter of the year.
In an updated report, Chewy, Inc. (NYSE:CHWY) said net income fell by 79 percent to $62 million from $299.1 million in the same period last year. Net sales grew by 8.4 percent to $3.1 billion from $2.86 billion year-on-year.
“Q2 net sales exceeded the high end of our guidance range, growing nearly 9 percent year over year to $3.1 billion, with Autoship customer net sales increasing by 15 percent and representing 83 percent of total net sales for the quarter,” said Chewy, Inc. (NYSE:CHWY) CEO Sumit Singh.
“Chewy’s differentiated value proposition was once again on display, with both active customers and share of wallet (NSPAC) growing 4.5 percent year over year to reach nearly 21 million customers and $591, respectively,” he added.
Chewy, Inc. (NYSE:CHWY) is a US-based retailer of pet food and other pet-related products.
3. Rubrik, Inc. (NYSE:RBRK)
Shares of Rubrik Inc. dropped by 18.05 percent on Wednesday to close at $80.72 apiece as investors appeared to have already priced in the company’s strong performance in the second quarter of the year before the official results.
Rubrik, Inc. (NYSE:RBRK), a security and AI company offering data protection, cybersecurity resilience, and enterprise AI acceleration, narrowed its net loss by 46 percent to $95.9 million from $176.9 million in the same period last year. Revenues grew by 51 percent to $309.86 million from $204.95 million year-on-year.
Following the results, Rubrik, Inc. (NYSE:RBRK) also raised its growth outlook for the third quarter and full-year period of 2025.
For the current quarter alone, Rubrik, Inc. (NYSE:RBRK) is targeting to book between $319 million and $321 million in revenues, while that for the full-year period is expected to hit $1.227 billion to $1.237 billion.
Subscription revenues for the full year alone are also targeted at $1.408 billion to $1.416 billion.
2. NextDecade Corp. (NASDAQ:NEXT)
NextDecade dropped its share prices by 18.62 percent on Wednesday to end at $8.09 apiece as investors appeared to have priced in developments for Train 4 of its Rio Grande liquefied natural gas project.
In a statement, NextDecade Corp. (NASDAQ:NEXT) said it was able to raise $6.7 billion in fresh funds to finance the development of Train 4, alongside the continuous progress for Train 5.
“The global call for additional natural gas infrastructure continues to be strong, and we are well positioned to meet this growing demand for cleaner energy, with approximately 24 million tonnes per annum (MTPA) of expected LNG production capacity currently under construction, Train 5 nearing a positive FID, and significant additional expansion capacity under development at the Rio Grande LNG site,” said NextDecade Corp. (NASDAQ:NEXT) Chairman and CEO Matt Schatzman.
The Train 4 alone is expected to add 6 million tons per annum of LNG and bring the total capacity under construction at the Rio Grande LNG project to 24 million tons annually.
Of the total amount, some $3.85 billion of funds were raised from a term loan facility, another $1.13 billion from equity investments, and $1.7 billion from its partners.
1. Synopsys Inc. (NASDAQ:SNPS)
Shares of Synopsys fell by 35.84 percent on Wednesday to a new five-month low, as investor sentiment was dampened by a dismal earnings performance in the third quarter of fiscal year 2025.
In intra-day trading, Synopsys Inc. (NASDAQ:SNPS) dropped to its lowest price of $380.84 before paring losses toward the end of the session.
This followed the release of its earnings performance in the third quarter, where Synopsys Inc.’s (NASDAQ:SNPS) net income declined by 40.56 percent to $242.5 million from $408 million in the same period last year, despite total revenues growing by 13 percent to $1.7 billion from $1.5 billion year-on-year.
“Q3 was a transformational quarter. Against a challenging geo-political backdrop, we closed the Ansys acquisition—expanding our portfolio, customer base, and opportunity. Now more than ever, Synopsys is the mission-critical partner technology R&D needs to design and deliver AI-powered products,” said Synopsys Inc. (NASDAQ:SNPS) President and CEO Sassine Ghazi.
“While I’m proud of how our team navigated external challenges in the quarter, our IP business underperformed expectations. We are taking action to enhance our competitive advantage and drive resilient, long-term growth,” he added.
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