Ten stocks lost their steam on Wednesday, slashing significant gains from the previous days, as investors reacted to a series of industry- and company-specific developments that sparked selling positions.
The stocks bucked a mostly optimistic broader market, with the Nasdaq and the S&P 500 jumping 1.12 percent and 0.58 percent, respectively. The Dow Jones, on the other hand, finished flat.
This article focuses on the 10 big names that were sold down in Wednesday’s trading, alongside the reasons behind their performance.
To come up with the list, we focused exclusively on mid-cap stocks with at least $2 billion in market capitalization and 5 million shares in trading volume.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
10. Caesars Entertainment Inc. (NASDAQ:CZR)
Caesars Entertainment Inc. (NASDAQ:CZR) extended its losing streak to a third straight day on Wednesday, shedding 5.17 percent to close at $23.38 apiece as investors continued to unload portfolios in gaming stocks amid growing threats posed by the surging prediction markets.
The sector has been under pressure since early this month after Robinhood Markets and Kalshi announced a jump in their trading volumes in the third quarter alone.
Robinhood said it saw 2 billion prediction contracts in the past quarter, while Kalshi’s betting volume, particularly sports betting, increased by 90 percent. The latter also gained an edge for its capability to operate in jurisdictions and age brackets currently off-limits to most gaming firms.
Kalshi earlier launched a new “build your own combo” parlay product that allows users to pair multiple contracts with a game.
The rapid rise of prediction contracts sparked sell-off across gaming stocks, including Caesars Entertainment Inc. (NASDAQ:CZR), with analysts expecting users to shift online for their betting portfolios.
“These companies need to come out with a strategy for investors — whether it’s launching prediction markets or stepping up marketing,” investment firm Citizens was quoted as saying in a report by Bloomberg.
“Until that happens, the prediction markets present a risk,” it noted.
9. Quantum Computing Inc. (NASDAQ:QUBT)
Quantum Computing extended its losing streak to a third straight day on Wednesday, dropping 5.41 percent to close at $20.82 as investors sold off positions following the completion of its $750 million share sale.
On the same day, Quantum Computing Inc. (NASDAQ:QUBT) concluded its private placement offering, raising the said amount through the issuance of more than 37.18 million new shares. The drop was mainly due to the potential dilution of existing shareholders’ ownership in the company.
According to Quantum Computing Inc. (NASDAQ:QUBT), it intends to use the net proceeds to fully fund commercialization, pursue strategic acquisitions, establish volume production capabilities, expand sales and engineering personnel, working capital, and general corporate purposes.
“Total capital raised since November 2024 is now $1.64 billion, positioning [the company] with the strongest balance sheet among publicly traded quantum computing companies and providing what we believe is sufficient funding to execute our current business plan through 2028,” said Quantum Computing Inc. (NASDAQ:QUBT) CEO Yuping Huang.
“Our focus now shifts to expedite the transition from a quantum technology innovation company to a leading quantum hardware manufacturer, progressing our mission of putting quantum into the hands of people,” he added.
8. Plug Power Inc. (NASDAQ:PLUG)
Plug Power dropped its share prices by 5.56 percent on Wednesday, a second day, to finish at $3.65 apiece as investor sentiment was dampened by a rating downgrade from an investment firm, alongside key leadership changes.
On Tuesday, Plug Power Inc. (NASDAQ:PLUG) announced that its president, Sanjay Shrestha, is stepping down from his role effective Friday, October 10, while CEO Andy Marsh, will take over the role of executive chairman.
The company did not divulge any reason for Shrestha’s resignation.
Both roles will be assumed by Chief Revenue Officer Jose Luis Crespo, who joined Plug Power Inc. (NASDAQ:PLUG) in 2014, where he played a pivotal role in the company’s sales funnel exceeding $8 billion.
Following the new leadership announcement, investment firm Clear Street downgraded Plug Power Inc. (NASDAQ:PLUG) to “hold” from “buy” previously, supported by valuation concerns amid a sharp 154 percent rally in just the past month.
7. PENN Entertainment Inc. (NASDAQ:PENN)
PENN Entertainment dropped for a 4th consecutive day on Wednesday, slashing 5.74 percent to close at $16.90 apiece as investors sold off positions in gaming stocks amid threats posed by the surging prediction markets.
PENN Entertainment Inc. (NASDAQ:PENN) dropped alongside its counterparts, including Caesars Entertainment Inc. (NASDAQ:CZR), with the overall sector facing pressure from the prediction markets recording billions worth of contracts.
Just recently, Robinhood Markets and Kalshi announced a jump in their trading volumes in the third quarter alone, with the former booking 2 billion prediction contracts, while Kalshi saw a 90-percent jump in sports betting on its platform. The latter also gained an edge for its capability to operate in jurisdictions and age brackets currently off-limits to most gaming firms. The rapid increase sparked sell-offs in PENN Entertainment Inc. (NASDAQ:PENN), which similarly offers sports betting services.
In an interview with Bloomberg, an analyst from investment firm Citizens said that gaming companies “need to come out with a strategy for investors — whether it’s launching prediction markets or stepping up marketing.”
“Until that happens, the prediction markets present a risk,” the analyst added.
6. IonQ Inc. (NYSE:IONQ)
IonQ snapped a five-day winning streak on Wednesday, shedding 6.22 percent to close at $74.30 apiece amid concerns of a quantum computing bubble, while investors took profits from the previous days’ gains.
In the past month and year alone, IonQ Inc. (NYSE:IONQ) has already jumped by whopping 81 and 678 percent, respectively, and analysts are posting concerns about their steep valuations.
According to analysts, the rapid increase is showing signs that the quantum computing industry is already forming a bubble.
In other developments, IonQ Inc. (NYSE:IONQ) announced that it has successfully completed the acquisition of Vector Atomic in an all-stock transaction.
According to IonQ Inc. (NYSE:IONQ), the acquisition significantly expands and rounds out its quantum technology platform by adding the world’s most advanced precision atomic clocks, inertial sensors, and synchronization hardware to its industry-leading computing and networking stack.
“The acquisition of Vector Atomic marks an exciting expansion for IonQ as we advance toward fully integrated quantum systems that deliver real-world impact across multiple industries,” said Chairman and CEO Niccolo de Masi.
“This acquisition broadens and deepens our full-stack quantum industry leadership by adding world-class, field-deployed sensing capabilities to our existing quantum computing and quantum networking solutions.”
5. Jefferies Financial Group Inc. (NYSE:JEF)
Jefferies extended its losing streak to an 8th consecutive day on Wednesday, dropping 7.88 percent to finish at $54.44 apiece, as investors sold off positions amid its exposure to First Brands’ bankruptcy protection filing.
In a disclosure to the Securities and Exchange Commission, Jefferies Financial Group Inc. (NYSE:JEF) said that its subsidiary—Apex Credit Partners LLC—lent $48 million to First Brands.
While it said that the amount only equates to 1 percent of Apex’s collateralized loan obligations assets, investors sold off positions to mitigate risks amid uncertainties from the request for bankruptcy protection.
Jefferies Financial Group Inc. (NYSE:JEF) said it has yet to receive any information regarding the results of the investigation, adding that it was in constant communication with First Brands’ advisors to determine the impact of the filing.
“Jefferies owns no other securities or obligations issued by First Brands,” Jefferies Financial Group Inc. (NYSE:JEF) said.
4. Joby Aviation Inc. (NYSE:JOBY)
Joby Aviation fell by 8.14 percent on Wednesday to end at $17.37 apiece as investor sentiment was dampened by plans to raise $513.9 million in fresh funds from a discounted share sale.
In a statement, Joby Aviation Inc. (NYSE:JOBY) said it issued 30.5 million new shares at a price of $16.85 apiece, a 10-percent discount from the $18.91 closing price on Tuesday, the same day it announced the plan.
The share sale also has the potential to increase by another $77.09 million, bringing the total to $591 million, after granting its underwriter a 30-day option to purchase up to an additional 4.575 million shares.
Joby Aviation Inc. (NYSE:JOBY) said it intends to use the net proceeds to fund its certification and manufacturing efforts, prepare for commercial operations, alongside other working capital and general corporate purposes.
The offering is expected to close on Thursday, October 9.
3. Opendoor Technologies Inc. (NASDAQ:OPEN)
Opendoor Technologies snapped a three-day winning streak on Wednesday, shedding 8.61 percent to close at $8.49 apiece as investors resorted to profit-taking following the previous days’ surge.
Earlier this week, Opendoor Technologies Inc. (NASDAQ:OPEN) rallied on news that the company would soon accept cryptocurrencies for real estate buying.
In response to a social media user’s suggestion for cryptocurrency payments, CEO Kaz Nejatian said: “we will. [We] just need to prioritize it.” He did not elaborate on the timeline and the specific assets to be accepted.
The confirmation boosted Opendoor Technologies Inc. (NASDAQ:OPEN), which is underway with the implementation of strategic initiatives towards a turnaround and revival, including the potential layoff of the majority of its total workforce.
In a recent interview, Opendoor Technologies Inc. (NASDAQ:OPEN) Chairman Keith Rabois vowed to slash the company’s workforce by 85 percent, which could affect some 1,190 employees.
“There [are] 1,400 employees at Opendoor. I don’t know what most of them do. We don’t need more than 200 of them,” he was quoted as saying.
2. Eightco Holdings Inc. (NASDAQ:ORBS)
Eightco Holdings snapped a two-day rally on Wednesday, dropping 9.20 percent to finish at $10.27 apiece, as investors resorted to profit-taking following a 37 percent jump in just the past three trading days of the week.
Earlier this week, shares of Eightco Holdings Inc. (NASDAQ:ORBS) were influenced by highly optimistic comments for Ethereum tokens—the company’s secondary treasury reserve, next to Worldcoins (WLD), after Bitmine Immersion Chairman Thomas Lee predicted that the asset would become one of the biggest macro trades over the next 10 to 15 years.
In other developments, Eightco Holdings Inc. (NASDAQ:ORBS) announced on Tuesday that it would update its investors about its operations through a monthly “Chairman’s Message” video series and corporate presentations.
“The ‘Chairman’s Message’ shares my perspective on why WLD is leading the charge into our AI-driven future. We see substantial value creation ahead, with a target of acquiring 800 million WLD tokens and a projected value of $10 per token, representing an $8 billion potential valuation for ORBS,” Chairman Dan Ives said.
1. NANO Nuclear Energy Inc. (NASDAQ:NNE)
NANO Nuclear ended a five-day rally on Wednesday, slashing 16.93 percent to close at $47.04 apiece as investors unloaded portfolios to take profits, while repositioning portfolios following a $400 million share sale.
In a statement, NANO Nuclear Energy Inc. (NASDAQ:NNE) announced the issuance of 8.49 million common shares priced at $47, and is expected to close on Friday, October 10, subject to closing conditions.
NANO Nuclear Energy Inc. (NASDAQ:NNE) intends to use the proceeds to advance the development, construction, and regulatory licensing activities for its lead micro nuclear reactor program, the KRONOS MMR Energy System, as well as continue with its development of other micro reactor projects and nuclear energy-related business lines.
The remainder will be used to pursue potential strategic acquisitions and fund other general corporate purposes.
In other news, NANO Nuclear Energy Inc. (NASDAQ:NNE) was recently added to the S&P Global Broader Market Index (BMI)—the world’s first float-adjusted global benchmark. Its inclusion paved the way for more public exposure, as funds and investment firms tracking the latter would need to add its stock into their fund portfolios to reflect the index’s composition.
The S&P Global BMI is designed to capture the global, investable equity universe, spanning 48 developed and emerging market countries and representing over 99 percent of available market capitalization worldwide.
While we acknowledge the potential of NNE 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 NNE and that has 100x upside potential, check out our report about this cheapest AI stock.
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