Ten stocks fell sharply on Wednesday, losing double digits, as investors soured on a flurry of disappointing earnings and outlook. Of the 10 firms, five fell to all-time lows.
The firms traded in line with a mostly pessimistic market, with the Dow Jones dropping 0.16 percent and the S&P 500 finishing flat after the Federal Reserve’s announcement that a December rate cut is not guaranteed. The Nasdaq was the sole gainer, up 0.55 percent.
In this article, we spotlight the 10 worst performers on Wednesday and detail the reasons behind their drop.
To come up with the list, we focused on companies with more than $2 billion in market capitalization and 5 million shares in trading volume.
Stock market data. Photo by Alesia Kozik on Pexels
10. Etsy Inc. (NYSE:ETSY)
Shares of online marketplace Etsy Inc. (NYSE:ETSY) fell by 12.80 percent on Wednesday to close at $65.21 apiece despite an earnings blowout in the third quarter of the year as investors sold off positions following the resignation of its chief executive officer (CEO) and other key leadership changes.
In an updated report, the company said that Josh Silverman is stepping down as its CEO effective December 31, 2025, without providing any reason. He will be replaced by incumbent President and Chief Growth Officer Kruti Patel Goyal effective January 1, 2026.
Meanwhile, Etsy Inc. (NYSE:ETSY) Chairman Fred Wilson will step down from his position, but will continue to serve on the board of directors.
“After over 8 years as Etsy’s CEO, I’ve decided that this is the right time for me to hand over the leadership baton to the next generation,” Silverman said, adding that Goyal is the right leader to guide the business forward.
On the same day, Etsy Inc. (NYSE:ETSY) announced a 31.6 percent jump in net income in the third quarter of the year, to $75.5 million from $57 million in the same period last year. This included an $800,000 non-cash foreign exchange gain as compared with a foreign exchange loss of $16.8 million in the same period last year.
Revenues inched up by 2.4 percent to $678 million from $662 million year-on-year.
For the fourth quarter of the year, the company is targeting to hit between $3.5 billion and $3.65 billion in gross merchandise sales.
9. Gates Industrial Corp. (NYSE:GTES)
Gates Industrial extended its losing streak to a third straight day on Wednesday, shedding 12.86 percent to close at $22.50 apiece as investors sold off positions after lowering its core sales growth outlook for full-year 2025.
In an updated report, Gates Industrial Corp. (NYSE:GTES) said it now expects core sales growth to increase by 0.5 percent to 1.5 percent year-on-year, a lower upper end versus the 2.5 percent previously.
Adjusted EBITDA was also revised to a range of $770 million to $790 million, versus the $765 million to $795 million.
In the third quarter of the year, Gates Industrial Corp. (NYSE:GTES) achieved better earnings performance, with revenues growing 3 percent to $855.7 million from $830.7 million in the same period last year. Net income attributable to shareholders also jumped by 71.4 percent to $81.6 million from $47.6 million year-on-year.
“Our team helped deliver improved sales and core growth in the third quarter supported by solid growth in Automotive Replacement and strong growth in Personal Mobility,” said Gates Industrial Corp. (NYSE:GTES) CEO Ivo Jurek.
“We are executing our footprint optimization initiatives and anticipate to reduce our structural cost position over the first half of next year. We are seeing solid revenue generation opportunities with our secular growth initiatives and are optimistic about our business prospects in the mid-term,” he noted.
8. Silgan Holdings Inc. (NYSE:SLGN)
Silgan Holdings fell to a new 52-week low on Wednesday, as investor sentiment was dented by a lower growth outlook for full-year 2025.
At intra-day trading, Silgan Holdings Inc. (NYSE:SLGN) dropped to its lowest price of $36.15 before trimming losses to end the day just down by 13.57 percent at $38.66 apiece.
In an updated report, the company said it has lowered its outlook for adjusted net income per diluted share to a range of $3.66 to $3.76, from the $3.85 to $4.05 previously, primarily due to expectations of lower volume and related under-absorbed costs, as well as higher income tax and interest expenses.
For the fourth quarter alone, Silgan Holdings Inc. (NYSE:SLGN) also expected EPS to end at $0.62 to $0.7, lower than the $0.85 in the same period last year due to expectations of higher tax rate and interest costs.
In the third quarter of the year, Silgan Holdings Inc. (NYSE:SLGN) grew its net income by 13 percent to $113.3 million from $100.1 million in the same period last year. Net sales increased by 15 percent to $2 billion from $1.7 billion year-on-year.
7. Enphase Energy, Inc. (NASDAQ:ENPH)
Enphase declined for a second day on Wednesday, shedding 15.15 percent to close at $31.14 apiece as investors unloaded portfolios after its revenue outlook for the fourth quarter of the year came in below analyst estimates.
In an updated report, Enphase Energy, Inc. (NASDAQ:ENPH) it expects revenues in the last quarter of the year to settle at a range of $310 million to $350 million, falling below consensus estimates of $374.4 million.
GAAP gross margin was also revised to a range of 40 to 43 percent, including approximately five percentage points of reciprocal tariff impact, versus the 41 to 44 percent previously.
Meanwhile, the company reported an impressive earnings performance in the third quarter of the year, with net income increasing by 45.5 percent to $66.6 million from $45.76 million in the same period last year.
Net revenues grew by 7.6 percent to $410 million from $380.87 million year-on-year on the back of higher demand and revenues from safe harbor.
6. Caesars Entertainment, Inc. (NASDAQ:CZR)
Caesars Entertainment nosedived to a new 52-week low on Wednesday, as investor sentiment was dampened by a dismal earnings performance in the third quarter of the year.
At intra-day trading, Caesars Entertainment, Inc. (NASDAQ:CZR) fell to its lowest price of $18.64 before paring losses to end the day just down by 15.23 percent at $18.73 apiece.
This followed a 511 percent wider net loss attributable to the company in the third quarter at $55 million versus $9 million in the same period last year.
Net revenues, on the other hand, finished flat at $2.87 billion, compared to the same period last year.
“Our regional portfolio delivered net revenues and Adjusted EBITDA growth as a result of consistent operating trends and continued positive returns from our capital projects. Our Las Vegas segment Adjusted EBITDA declined during the quarter due to lower city- wide visitation and poor table games hold. Volumes in our Caesars Digital segment were strong, driven by continued product improvements while Adjusted EBITDA was negatively impacted by lower-than-expected sports hold during September,” said Caesars Entertainment, Inc. (NASDAQ:CZR) Chief Executive Officer Tom Reeg.
“As we look to the fourth quarter, we anticipate improved operating performance given stronger occupancy in Las Vegas, continued momentum in our Caesars Digital segment and stable operating trends in our regional portfolio,” he added.
5. Extreme Networks, Inc. (NASDAQ:EXTR)
Extreme Networks nosedived by 15.23 percent on Wednesday to finish at $18.73 apiece as investors appeared to have already priced in a strong earnings performance in the first quarter of fiscal year 2026 amid the artificial intelligence boom.
In an updated report, Extreme Networks, Inc. (NASDAQ:EXTR) said it swung to a net income of $5.6 million during the quarter from a $10.5 million net loss in the same period last year.
Total net revenues jumped by 15 percent to $310 million from $269 million year-on-year.
“The strength of our first quarter results was driven by improved execution, increasing customer demand and expanding interest in our AI-powered networking platform and our high-performance solutions,” said Extreme Networks, Inc. (NASDAQ:EXTR) President and CEO Ed Meyercord.
“This marked six consecutive quarters of revenue growth and three straight quarters of double-digit year-over-year gains, which is a positive sign that we are gaining share. ARR (annual recurring revenue) is up 24 percent year-over-year, as momentum grows with our subscription model. Continuing share gains in the Americas along with increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by significant wins this quarter,” he added.
For the second quarter, Extreme Networks, Inc. (NASDAQ:EXTR) is targeting to hit $309 million to $315 million in total net revenues, with earnings per share of $0.03 to $0.06.
4. Avantor Inc. (NYSE:AVTR)
Avantor extended its losing streak to a 4th straight day on Wednesday, losing 23.21 percent to close at $11.58 apiece after swinging to a steep loss in the third quarter of the year.
In an updated report, Avantor Inc. (NYSE:AVTR) said it fell to a net loss of $711.8 million from a $57.8 million net income in the same period last year.
Net sales also dropped by 5.9 percent to $1.6 billion from $1.7 billion year-on-year, dampened by a 2.8 percent negative impact from a merger and acquisition transaction.
In the nine-month period, Avantor Inc. (NYSE:AVTR) swung to a net loss of $582.6 million, reversing a $211.1 million net income in the same comparable period. Net sales dipped by 3.9 percent to $4.9 billion from $5.1 billion year-on-year.
“Avantor’s diverse portfolio, strong production capabilities, and long-standing customer relationships provide a strong foundation for sustained value creation,” said Avantor Inc. (NYSE:AVTR) President and CEO Emmanuel Ligner.
“To position Avantor for success in any macroeconomic environment, we are making decisive, meaningful changes aimed at improving execution, accountability and financial performance. We are taking action to evolve our go-to-market approach, sharpen our customer value proposition, and invest strategically in our manufacturing and supply chain. We are also carefully scrutinizing our portfolio to ensure our focus is on the opportunities that will drive the greatest value creation for our customers and shareholders,” he noted.
3. Fiserv Inc. (NYSE:FI)
Fiserv fell to an all-time low on Wednesday, as investors unloaded portfolios following announcements of a board reshuffle and plans to transfer to the Nasdaq stock exchange.
At intra-day trading, the stock dropped to its lowest level of $66.58 before trimming gains to finish the day just down by 44.04 percent at $70.60 apiece.
In an updated report, Fiserv Inc. (NYSE:FI) said incumbent Chairman Doyle Simons will step down from his post, to be replaced by Gordon Nixon—former CEO of the Royal Bank of Canada—who will likewise join the board of directors, along with Céline Dufétel, and Gary Shedlin.
Shedlin—former Finance chief of BlackRock—will also replace Kevin Warren as chairman of the audit committee, while Dufetel—incumbent CFO of Bridgewater Associates—will join as a member of the audit committee.
The leadership changes will take effect on January 1, 2026.
Meanwhile, Fiserv Inc. (NYSE:FI) also announced that it would transfer the listing of its shares and bonds to the Nasdaq beginning November 11, 2025. The shares will be traded under the ticker symbol “FISV.”
In the third quarter of the year, Fiserv Inc. (NYSE:FI) grew its attributable net income by 40 percent to $792 million from $564 million in the same period last year. Total revenues ended flat at $5.26 billion.
2. Varonis Systems, Inc. (VRNS)
Varonis Systems dropped to an all-time low on Wednesday, after recording a higher net loss in the third quarter of the year, coupled with a lower growth guidance for the full-year period.
At intra-day trading, the stock dropped to its lowest 52-week price of $32.02 before paring losses to end the day just down by 48.67 percent at $32.34 apiece.
In an updated report, Varonis Systems, Inc. (VRNS) said net loss widened by 63 percent to $29.9 million from $18.3 million in the same period last year, despite total revenues increasing by 8.78 percent to $161 million from $148 million year-on-year.
Looking ahead, Varonis Systems, Inc. (VRNS) lowered its revenue outlook for full-year 2025, to a range of $615.2 million to $621.2 million, versus the $616 million to $628 million in the same period last year.
Annual recurring revenue outlook was also reduced to a range of $730 million to $738 million, or a growth of 14 to 15 percent, versus the $748 million to $750 million or a year-on-year growth of 17 percent, previously.
“In the final weeks of the quarter, we experienced lower renewals in the Federal vertical and in our non-Federal on-prem subscription business, which led to a shortfall relative to our expectations,” said Varonis Systems, Inc. (VRNS) CEO Yaki Faitelson.
1. Stride, Inc. (NYSE:LRN)
Stride slid to an all-time low on Wednesday, as investor sentiment was dampened by an unusually slow growth outlook for the fiscal year 2026, alongside a faulty software glitch that caused an unexpected drop in enrollment during the summer.
At intra-day trading, Stride, Inc. (NYSE:LRN) dropped to its lowest 52-week price of $68.83 before trimming losses to end the day just down by 54.37 percent at $70.05 apiece.
According to the company, it experienced a major issue during a platform upgrade, causing it to miss between 10,000 to 15,000 enrollments.
“The implementations did not go as smoothly as we anticipated… This poor customer experience has resulted in some higher withdrawal and lower conversion rates than we expected,” Stride, Inc. (NYSE:LRN) CEO James Rhyu was quoted as saying.
He added that the management will fix the upgrade within a year.
Meanwhile, Stride, Inc. (NYSE:LRN) forecast sales to grow by 5 percent, notably slower than the annualized sales growth of 19 percent over the past five years.
However, Stride, Inc. (NYSE:LRN) registered an impressive earnings performance in the last quarter, jumping 68 percent to $68.8 million from $40.88 million in the same period last year.
Revenues increased by 12.68 percent to $620.88 million from $551 million year-on-year.
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