Ten stocks ended Wednesday’s trading with a lackluster performance, as investors soured on mostly the lack of fresh company-specific developments to boost buying appetite.
Meanwhile, only the tech-heavy Nasdaq finished in the red among Wall Street’s major indices, dropping 0.26 percent. The Dow Jones and the S&P 500 both finished higher by 0.68 percent and 0.06 percent, respectively.
In this article, we name the 10 worst-performing mid-cap companies and break down the reasons behind their decline.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and more than 5 million shares in trading volume.
A stock market graph. Photo by Alesia Kozik on Pexels
10. Fluence Energy Inc. (NASDAQ:FLNC)
Fluence Energy dropped for a second day on Wednesday, shedding 7.33 percent to close at $19.21 apiece, as investors repositioned portfolios ahead of the results of its full fiscal year earnings performance, where revenues were expected to hit only the lower end of its earlier guidance.
In a notice to investors, Fluence Energy Inc. (NASDAQ:FLNC) said it is scheduled to announce the results of its financial and operating highlights for the fourth quarter of fiscal year 2025 after market close on November 24, 2025.
Earlier, Fluence Energy, Inc. (NASDAQ:FLNC) provided an outlook for the full fiscal year, with revenues expected to be at $2.6 billion to $2.8 billion. However, the company noted that it would likely hit only the lower range of the guidance due to a slower-than-expected production expansion at its recently commissioned US manufacturing facilities.
Revenues from the delay are expected to carry over to fiscal year 2026.
“These facilities are expected to reach targeted capacity by calendar year-end, ensuring on-time customer deliveries and strengthening Fluence’s domestic content position,” it said.
Meanwhile, Fluence Energy, Inc. (NASDAQ:FLNC) is targeting adjusted EBITDA to settle between $0 and $20 million, reflecting stronger than projected gross margins for the third fiscal quarter, coupled with overhead cost reductions. Annual recurring revenue is pegged at $145 million.
9. Applied Digital Corp. (NASDAQ:APLD)
Applied Digital dropped by 7.56 percent on Wednesday to close at $26.41 apiece as investors sold positions following news that it secured $787.5 million in fresh funds from Macquarie Asset Management.
In a statement, Applied Digital Corp. (NASDAQ:APLD) said that the total amount forms part of the $5 billion perpetual preferred equity financing facility, which it secured earlier, proceeds of which will be used to support the development of its Polaris Forge 1 and 2 data centers in North Dakota.
Of the total, $450 million will be allocated for the completion of Forge 2, which is capable of powering 1 GW of critical IT load. Of the total capacity, some 200 MW has already been successfully leased to a US-based Investment Grade Hyperscaler. Meanwhile, the balance will be allocated for Forge 1.
In addition to the said funding, Applied Digital Corp. (NASDAQ:APLD) last Monday entered into a loan and security agreement with First National Bank of Omaha for up to $65 million in revolving loans and letters of credit from time to time.
The loan carries an interest rate of 2.75 percent per annum and will be secured by all of Applied Digital Corp.’s (NASDAQ:APLD) assets.
8. Lumen Technologies Inc. (NYSE:LUMN)
Lumen fell for a 4th straight day on Wednesday, shedding another 7.57 percent to close at $8.55 apiece as investors parked funds amid a lackluster broader market, while waiting for fresh catalysts to spark buying appetite.
Earlier, Lumen Technologies Inc. (NYSE:LUMN) announced that it widened its net loss in the third quarter of the year by 319 percent to $621 million from $148 million in the same period last year on the back of higher expenses.
Meanwhile, adjusted EBITDA fell by 32 percent to $571 million from $843 million, while total revenues dipped by 4.16 percent to $3.087 billion from $3.221 billion year-on-year.
Despite the figures, Lumen Technologies Inc. (NYSE:LUMN) reaffirmed its growth outlook for full-year 2025, with total adjusted EBITDA expected to hit $3.2 billion to $3.4 billion.
Capital expenditures were on track to hit $4.1 billion to $4.3 billion, as the company ramps up developments aimed at supporting the artificial intelligence industry.
7. Nebius Group N.V. (NASDAQ:NBIS)
Nebius dropped its share prices for a third straight day, shedding 7.69 percent to close at $94.36 apiece as investor sentiment was dampened by a disappointing earnings performance in the third quarter of the year, alongside plans to raise new funds through a billion-dollar share sale.
In an updated report, Nebius Group N.V. (NASDAQ:NBIS) said it widened its net loss by 26 percent to $119.6 million from $94.2 million in the same period last year, despite revenues expanding by 355 percent to $146.1 million from $32.1 million year-on-year.
Additionally, Nebius Group N.V. (NASDAQ:NBIS) said it has readied plans to issue 25 million Class A shares, which would be sold through an at-the-market (ATM) offer. Details of the prospectus were not divulged, but if based on the company’s latest closing price, the share sale could be worth more than $2 billion.
“We will evaluate the program regularly based on our capital needs. The program enables us to access equity funding on an efficient ongoing basis; however, we will remain dilution-sensitive as we prepare to finance future growth opportunities,” the company said.
Lastly, Nebius Group N.V. (NASDAQ:NBIS) announced that it bagged a $3 billion deal with Meta to deliver infrastructure for its AI efforts.
6. QuantumScape Corp. (NYSE:QS)
QuantumScape dropped its share prices by 7.98 percent to close at $14.64 apiece, as investors parked funds while waiting for more catalysts to boost buying appetite.
QuantumScape Corp. (NYSE:QS) traded in line with the broader market, which ended with a lackluster performance on the same day, with investors staying on the sidelines ahead of concrete developments on the government shutdown.
In other news, QuantumScape Corp. (NYSE:QS) announced on the same day that its chief legal officer, Michael McCarthy III, disposed of more than 178,000 shares in the company last week.
Earlier, QuantumScape Corp. (NYSE:QS) announced an impressive earnings performance in the third quarter of the year, having narrowed its net loss by 11.5 percent to $105.8 million from $119.6 million in the same period last year.
Loss from operations dwindled by 11.6 percent to $114.99 million from $130.16 million year-on-year.
Following the results, the company received a higher price target of $16 from TD Cowen, versus the $5 previously. Based on its latest closing price, the new target still marks a 9 percent upside potential.
5. Tencent Music Entertainment Group (NYSE:TME)
Tencent Music fell by 8.39 percent on Wednesday to close at $19.01 apiece as investors took path from an investment firm’s lower price target for its stock.
In a market note, Macquarie reduced its price target for Tencent Music Entertainment Group (NYSE:TME) to $28.30 from $29.80 previously, but maintained its “outperform” rating on the stock. Still, the figure marks a 49 percent upside from its latest closing price.
The revision followed the Tencent Music Entertainment Group’s (NYSE:TME) earnings performance in the third quarter of the year, with net income attributable to shareholders jumping 32 percent to 2.4 billion yuan from 1.814 billion yuan in the same period last year.
Revenues increased by 20.6 percent to 8.463 billion yuan from 7.015 billion yuan year-on-year, primarily due to a strong 27 percent growth in revenues from online music services in the same period.
“In the third quarter, we delivered another set of solid results, underpinned by the well-rounded performance of our online music business. Our ongoing innovations in content enrichment, services expansion to include more live experiences, continued to fuel consistent subscription revenue growth while boosting momentum in non-subscription services, especially in concerts and artist merchandise,” said Tencent Music Entertainment Group (NYSE:TME) Executive Chairman Cussion Pang.
“Backed by our strong financial position and operational excellence, we are poised to further broaden our music services and create greater value for the entire music industry,” he added.
4. Nextracker Inc. (NASDAQ:NXT)
Nextracker dropped for a second day on Wednesday, slashing 8.81 percent to close at $96.50 apiece as investors sold off positions following plans to diversify from solar tracking to other technologies such as robotics and AI.
In a statement, Nextracker Inc. (NASDAQ:NXT) said that it would change its name to Nextpower Inc. in line with plans to transform from being a sole solar tracking company to becoming a full-platform organization, delivering an integrated portfolio of advanced technologies and services for utility-scale solar power plants.
Despite the name change, the company will continue to trade under the ticker symbol “NXT.”
The new brand will offer a number of product portfolios, including trackers, foundations, eBOS, advanced module frames, robotics, software, yield management and control systems, and services.
In other news, Nextracker Inc. (NASDAQ:NXT) reaffirmed its outlook for full-year 2026 and announced a target of hitting $4.8 billion to $5.6 billion in revenues by 2030. Of the total, approximately one-third is expected to come from sales of non-tracker products and services.
“Our multi-year financial targets reflect our confidence in Nextpower’s growth trajectory and the strength of our business model,” said CFO Chuck Boynton. “We expect to deliver continued top-line growth, expand cash generation, and fund ongoing investments in growth while maintaining healthy margins and a fortress balance sheet through disciplined execution and operational efficiency.”
3. D-Wave Quantum Inc. (NYSE:QBTS)
D-Wave fell for a third day on Wednesday, shedding 8.93 percent to close at $26.40 apiece as investors continued to unload portfolios amid a disappointing earnings performance in the past quarter.
In its latest earnings release, D-Wave Quantum Inc. (NYSE:QBTS) said it widened its net loss by 516 percent to $140 million from $22.7 million in the same period last year, primarily due to $121.9 million in non-cash, non-operating charges related to the remeasurement of its warrant liability, coupled with realized losses from warrant exercises.
Revenues, on the other hand, soared by 98 percent to $3.7 billion from $1.87 billion year-on-year.
“Our strong third quarter results reflect the momentum we see building across every aspect of our business, with key metrics, including revenue, gross profit, bookings and cash balance, clearly indicating D-Wave’s success in accelerating global quantum computing adoption,” said D-Wave Quantum Inc. (NYSE:QBTS) CEO Alan Baratz.
“The world is watching quantum, and specifically D-Wave, as we deliver quantum computing’s value to businesses, researchers and governments now, while advancing the technology for even greater impact and scale in the future,” he added.
2. Rigetti Computing, Inc. (NASDAQ:RGTI)
Rigetti Computing extended its losing streak to a 5th straight day on Wednesday, slashing 9.87 percent to close at $28.30 apiece following disappointing earnings results in the third quarter of the year.
In its financial statement, Rigetti Computing, Inc. (NASDAQ:RGTI) said that net loss widened by 1,258 percent to $200.97 million from $14.8 million in the same period last year. Revenues dropped by 20 percent to $1.9 million from $2.38 million year-on-year.
Looking ahead, Rigetti Computing, Inc. (NASDAQ:RGTI) said that it is on track to deliver a 100+ qubit chiplet-based quantum system with an anticipated 99.5 percent median two-qubit gate fidelity by the end of 2025.
By the end of 2026, it targets to deploy a 150+ qubit system with an anticipated 99.7 percent median two-qubit gate fidelity; as well as a 1,000+ qubit system by the end of 2027 with a projected 99.8 percent median two-qubit gate fidelity.
The outlook reflects optimism and strong demand for its quantum computers.
“This past quarter, we saw strong momentum with both the demand for our on-premises quantum computers and the development of collaborations to advance our own R&D and the quantum ecosystem more broadly,” said Rigetti Computing, Inc. (NASDAQ:RGTI) CEO Subodh Kulkarni.
“Rigetti’s open and modular architecture continues to allow us to integrate innovative solutions with our technology stack, including our Air Force Research Laboratory (AFRL)-funded project with QphoX and AFRL to advance superconducting quantum computer networking.”
1. Circle Internet Group (NYSE:CRCL)
Circle Internet dropped its share prices by 12.21 percent on Wednesday to close at $86.30 apiece as investors appeared to have priced in a strong earnings performance in the third quarter of the year.
In a statement, Circle Internet Group (NYSE:CRCL) said it grew its net income by 201.9 percent to $214.38 million from $71 million in the same period last year, thanks to an income tax benefit of $61 million due to stock-based compensation expense, research and development tax credits, and the impact of recently enacted US tax legislation.
Net income also included a $48 million benefit from the decrease in fair value of its convertible debt caused by a lower stock price in the third quarter.
Revenues grew by 66 percent to $739.7 million from $445.76 million year-on-year.
“Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet,” said Circle Internet Group (NYSE:CRCL) Chairman and CEO Jeremy Allaire.
“As digital dollars become integrated with the technological utility of the internet, Circle’s infrastructure is helping global finance move with greater trust, transparency and velocity. With growing circulation, accelerating commercial partnerships and expanding collaboration across industries, we’re proud of the tangible progress toward a more open and efficient global financial system,” he noted.
For the full-year 2025, Circle Internet Group (NYSE:CRCL) raised its outlook for other revenues to a range of $90 million to $100 million, from $75 million to $85 million projected previously.
While we acknowledge the potential of CRCL 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 CRCL 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.
