Ten stocks kicked off the trading week with a lackluster performance, bucking an overall market cheer, amid a combination of profit-taking and the lack of fresh catalysts to support buying appetite.
On Wall Street, all major indices finished in the green, led by the S&P 500, with 0.64 percent gains, followed by the Nasdaq, jumping 0.52 percent, and the Dow Jones, inching up 0.47 percent.
Indices aside, this article focuses on the 10 worst-performing stocks alongside the reasons behind their drop.
To come up with the list, we focused on the stocks with a $2 billion market capitalization and 5 million shares in trading volume.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. Macy’s Inc. (NYSE:M)
Macy’s snapped a three-day winning streak on Monday, shedding 3.69 percent to close at $22.95 apiece as investors began repositioning portfolios following an earlier weak outlook for the holiday period.
According to Macy’s Inc. (NYSE:M), it anticipates selective spending among its consumers during the holiday period as cost pressures persist during the quarter due to higher tariffs.
Additionally, sentiment was further dampened by news that Macy’s Inc. (NYSE:M), alongside its retail peers Best Buy and Kohl’s, would slap charges on returns for holiday gifts.
Macy’s Inc. (NYSE:M) alone said it would deduct a $9.99 shipping fee from the full payment for returned products, unless a customer is a loyalty member. The move was aimed at minimizing returns.
Macy’s Inc. (NYSE:M) is one of the leading retailers of fashion, beauty, home food, and accessories in the US.
In the third quarter of the year, its net income dwindled by 60.7 percent to $11 million from $28 million in the same period last year, while net sales and total revenues ended flat at $4.7 billion and $4.9 billion, respectively.
Net sales, however, exceeded the company’s previous guidance range of $4.5 billion to $4.6 billion.
It can be recalled that Macy’s Inc. (NYSE:M) announced earlier plans to close 150 underperforming stores by the end of 2026. Of the total, 50 were planned for this year.
9. Carvana Co. (NYSE:CVNA)
Carvana extended its losses to a second day on Monday, shedding 3.69 percent to finish at $433.59 apiece as investors appeared to have already priced in its inclusion in the S&P 500.
The S&P Dow Jones Indices said that the update officially took effect on the same day, December 22, following an index rebalancing earlier this month.
Month-to-date, Carvana Co.’s (NYSE:CVNA) shares are now up by 15.8 percent.
Apart from Carvana Co. (NYSE:CVNA), the S&P Dow Jones Indices also added CRH PLC and Comfort Systems USA to the S&P 500.
Newly added companies typically see a boost in their share prices ahead of the index rebalancing, as funds tracking the index would need to load up shares in the company and dispose of those that were removed to mirror the benchmark.
In other news, Carvana Co. (NYSE:CVNA) said that it would become the title sponsor of The PPA Masters pickleball tournament at the Mission Hills Country Club in Rancho Mirage, California, on Jan. 12-18, 2026.
The sponsorship, which would be renamed The Carvana Masters, would pave the way for an expanded brand exposure among thousands of pickleball fans and players.
The PPA Masters is one of the most prestigious pickleball tournaments in the US.
8. Dominion Energy Inc. (NYSE:D)
Dominion Energy extended its losing streak to a third straight day on Monday, slashing 3.72 percent to close at $57.22 apiece as investors trimmed their positions after one of its wind projects was ordered temporarily shut over national security concerns.
On Monday, the Trump administration ordered Dominion Energy Inc. (NYSE:D), which owns the Coastal Virginia Offshore Wind, alongside other wind developers, to temporarily halt their construction of wind projects amid national security concerns raised by the Pentagon.
Specifically, the US government found that the turbine blades and highly reflective towers create a radar interference risk.
According to Interior Secretary Doug Burgum, the halt was necessary to give the federal government more time to work with leaseholders and state partners to assess the possibility of mitigating the national security risks posed by the projects.
Coastal Virginia Offshore Wind is a 176-turbine project currently under development, which, according to Dominion Energy Inc. (NYSE:D), is expected to energize over 600,000 homes. The project was expected to be completed next year.
In a statement, Dominion Energy Inc. (NYSE:D) said that stopping the project “for any length of time will threaten grid reliability for some of the nation’s most important war-fighting, AI, and civilian assets.”
“It will also lead to energy inflation and threaten thousands of jobs,” it added.
7. Stellantis NV (NYSE:STLA)
Stellantis dropped for a fifth consecutive day on Monday, shedding 3.99 percent to close at $11.08 apiece as investor sentiment was dampened by the company’s cautious investment outlook in Europe.
This followed Stellantis NV (NYSE:STLA) CEO Antonio Filosa’s interview with the Financial Times, saying that the European Commission’s revised vehicle emission rules were lacking a clear growth strategy for the European car industry, making it harder to justify further investments in the region.
Investors took the comments in a negative light as it could spell the company’s expansion guidance.
Under the revised rules, automakers would be permitted to keep emitting 10 percent of their 2021 levels and continue selling internal combustion and hybrid models.
However, they will be required to compensate by using low-carbon steel and sustainable fuels.
“This package does not do the job. There are none of the urgent measures needed to return the European automotive sector to growth,” Filosa said.
Earlier, Stellantis NV (NYSE:STLA) indicated that it would ramp up its spending in Europe if the Commission would ease its 2035 phase-out plan for petrol engines.
However, after the EU dropped the rules requiring carmakers to cut emissions to zero by 2030, conditions still do not appear to be in place.
“Without growth, it becomes very difficult to think about investing more,” Filosa said.
“Without additional investments, it is difficult to build the resilient supply chain that is vital for European jobs, European prosperity, and European security.”
6. Plug Power Inc. (NASDAQ:PLUG)
Plug Power dropped its share prices by 4.09 percent on Monday to close at $2.11 apiece as investors unloaded portfolios following the lack of fresh developments to bolster buying appetite.
In recent developments, Plug Power Inc. (NASDAQ:PLUG) announced last week that it successfully installed a 5MW GenEco electrolyzer system for Cleanergy Solutions Namibia’s green hydrogen project, Walvis Bay.
The plant, which officially opened in September, represents Africa’s first fully integrated commercial green hydrogen facility and will serve as the foundation for expanding hydrogen mobility across Namibia and neighboring markets.
According to Plug Power Inc. (NASDAQ:PLUG), its PEM GenEco electrolyzer is integrated directly at Cleanergy Solutions Namibia’s Hydrogen Dune site, which includes a 5MW solar park spanning more than 6.5 hectares and a 5.9 MWh battery energy storage system to produce renewable hydrogen off-grid.
The locally generated hydrogen will support hydrogen-powered trucks, port and rail equipment, and small ships operating through the Port of Walvis Bay, while also supplying vehicles converted on site for dual-fuel operation using hydrogen and conventional fuels.
Also this month, Plug Power Inc. (NASDAQ:PLUG) clinched a million-dollar deal with the National Aeronautics and Space Administration (NASA) to supply the latter with approximately 480,000 pounds of the commodity to NASA’s Glenn Research Center in Cleveland, Ohio, and at the Neil A. Armstrong Test Facility in Sandusky, Ohio, for a maximum contract value of about $2.8 million.
5. Seagate Technology Holdings plc (NASDAQ:STX)
Seagate Technology saw its share prices drop by 4.56 percent on Monday to close at $282.85 apiece as investors resorted to profit-taking following two straight days of gains.
Additionally, investor sentiment may have been dampened by a former hedge fund manager’s weak outlook about its stock.
In the latest episode of Mad Money, host and former hedge fund manager Jim Cramer said that while Seagate Technology Holdings plc (NASDAQ:STX) has seen a remarkable gain over the past few months, he said the firm still was not a growth company.
In other news, Seagate Technology Holdings plc (NASDAQ:STX) has set a December 24 ex-dividend date for its next quarterly dividend amounting to $0.74, payable on January 9, 2026.
The dividends followed impressive earnings performance in the third quarter of the year, during which the company grew its net income by 80 percent to $549 million from $305 million in the same period last year. Revenues jumped by 21 percent to $2.6 billion from $2.17 billion year-on-year.
“AI is transforming how content is being consumed and generated, increasing the value of data and storage, and Seagate is well positioned for continued profitable growth,” said Seagate Technology Holdings Plc (NASDAQ:STX) Chairman and CEO Dave Mosley.
4. Lumen Technologies, Inc. (NYSE:LUMN)
Lumen Technologies ended two straight days of gains on Monday, slashing 5.13 percent to close at $7.77 apiece as investors turned cautious after the company announced a plan to buy back some of its debt early.
According to Lumen Technologies, Inc. (NYSE:LUMN), it would redeem early all its notes due 2029, 2030, and 2031.
While the offer stands to benefit the bondholders, the initiative raised caution among shareholders over the possibility of Lumen Technologies, Inc. (NYSE:LUMN) burning more cash and issuing new notes to implement the initiative.
The early redemption followed Lumen Technologies, Inc.’s (NYSE:LUMN) plan earlier this month to raise $1.25 billion in fresh funds from the issuance of senior notes due 2036.
The notes, which were $500 million more than the initial plan, carry a yield rate of 8.5 percent, proceeds of which will be used to fund the buyback of the 2029, 2030, and 2031 notes.
The 2036 notes were priced to investors at a price of 100 percent of their aggregate principal amount and will mature on Jan. 15, 2036. Upon issuance, the notes will be fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by Level 3 Parent, LLC, the direct parent of Level 3 Financing, and certain unregulated subsidiaries of Level 3 Financing.
3. Infosys Limited (NYSE:INFY)
Infosys snapped a three-day winning streak on Monday, shedding 5.24 percent to finish at $19.16 as investors resorted to profit-taking after hitting a new 52-week high in the previous trading day.
On Friday, the stock surged to its highest price of $30 but trimmed gains to close the session at $20.22 apiece. Monday’s drop can also be attributed to the lack of fresh catalysts to further support buying appetite.
Infosys Limited (NYSE:INFY) is one of the leading digital services and consulting companies globally.
In the second quarter of fiscal year ending September 2025, Infosys Limited (NYSE:INFY) grew its net income by 8 percent to $839 million from $777 million in the same period last year.
Revenues were also higher by 3.7 percent to $5.076 billion from $4.894 billion year-on-year.
Earnings per share were at $0.20, higher by 7.9 percent than the $0.19 in the same period a year earlier.
2. Ambev SA (NYSE:ABEV)
Ambev dropped its share prices by 7.63 percent to close at $2.30 apiece amid the lack of catalysts to boost buying appetite and what appeared to be an early window-dressing.
The practice is common among institutional investors, where they tweak portfolios before the reporting periods, typically quarterly and annually, by loading up on well-performing stocks and trimming those that underperform to present a stronger portfolio to clients.
Ambev SA (NYSE:ABEV) is a company that owns Brazil’s top brands, including Skol, Brahma, Antarctica, Bohemia, and Quilmes, among others.
In the past few weeks, the company received a downgraded rating of “market perform” from Bernstein, versus “outperform” previously, saying that while it is confident about Ambev SA’s (NYSE:ABEV) long-term fundamentals, it believed that the current expectations were “overblown.”
Bernstein recommended taking profits on the company’s shares and waiting for a more attractive entry point before loading positions in the company.
1. Trump Media & Technology Group Corp. (NASDAQ:DJT)
Trump Media fell by 10.44 percent on Monday to close at $14.41 apiece as investors continued to take profits following last week’s surge, supported by its $6 billion merger with fusion company TAE Technologies.
On Thursday, Trump Media & Technology Group Corp. (NASDAQ:DJT) said that it officially inked a definitive merger agreement with TAE Technologies to combine in an all-stock transaction, which is viewed to create one of the world’s first publicly traded fusion companies.
As part of the agreement, Trump Media & Technology Group Corp. (NASDAQ:DJT) would provide TAE with $200 million in cash at the signing date, and an additional $100 million upon the initial filing of Form S4 on mergers, acquisitions, and exchange offers to the Securities and Exchange Commission.
After a successful merger, the combined company would immediately begin next year the construction of the world’s first utility-scale fusion power plant, capable of powering 50 MWe.
Thereafter, it would ramp up the expansion of fusion power plants with capacities ranging from 350 to 500 MWe.
“Fusion power plants are expected to provide economic, abundant, and dependable electricity that would help America win the AI revolution and maintain its global economic dominance,” Trump Media & Technology Group Corp. (NASDAQ:DJT) said.
Upon the completion of the transaction, shareholders of each party would own an equal 50 percent stake in the combined firm.
While we acknowledge the potential of DJT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DJT and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge fund investor letters by entering your email below.
