Ten companies mirrored a generally pessimistic market environment on Tuesday, recording hefty losses, as investors parked funds while waiting for more concrete updates on key economic developments.

Among Wall Street’s main indices, only the Dow Jones finished in the green, jumping by 0.91 percent. In contrast, the S&P 500 and the tech-heavy Nasdaq both dropped by 0.11 percent and 0.82 percent, respectively.

In this list, we highlight the names of the 10 worst-performing stocks and detail the reasons behind their drop.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.

10. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Kratos Defense dropped its share prices by 7.28 percent on Tuesday to close at $43.07 apiece as investors resorted to profit-taking after hitting a new all-time high in the previous trading.

On Monday, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) soared to an all-time high of $47.09 after successfully raising $575 million from a share sale program.

According to the company, it was able to sell more than 14.9 million common shares at a price of $38.5 apiece. The total amount included the overallotment option worth $75 million.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) said that net proceeds from the offer will be used to fund investments critical to national security, targeted acquisitions, and other general corporate purposes, including the repayment of existing debt and fees related to the offering.

In recent news, the company earned a “buy” recommendation and a higher price target of $52 from Truist Securities. The new price target marked a 37-percent increase from its previous price target of $38.

According to Truist, the new projects have the potential to raise the listed firm’s revenues by $150 million in the coming years, adding that it was bullish on the company for this year and the next amid higher growth expectations from the new contracts.

9. Bloom Energy Corporation (NYSE:BE)

Bloom Energy declined by 7.48 percent on Tuesday to close at $22.13 apiece as investor sentiment was dampened by the passage of the One Big Beautiful Bill Act in the Senate that included provisions to end tax credits for clean energy.

In the passed Senate version, 45V clean hydrogen tax credits will expire on January 1, 2028, as opposed to the original 2032 in the Inflation Reduction Act.

Investors took the news in a negative light and repositioned portfolios ahead of the bill’s July 4 deadline.

In the first quarter of the year, Bloom Energy Corporation (NYSE:BE) narrowed its net loss by 58.6 percent to $23.8 million from $57.5 million in the same period last year.

Revenues increased by 38.7 percent to $326 million from $235 million year-on-year.

For the full year, Bloom Energy Corporation (NYSE:BE) expects revenues to settle between $1.65 billion and $1.85 billion.

8. Oklo Inc. (NYSE:OKLO)

Oklo Inc. fell by 7.59 percent on Tuesday to close at $51.74 apiece, tracking a sluggish wider market sentiment as investors were in a wait-and-see mode for further catalysts to boost investing appetite.

Additionally, investors unloaded positions following comments from Mad Money host and former hedge fund manager Jim Cramer to “wait for it to come in.”

“Maybe we give it a week and then take a look. But I am not against Oklo,” he said.

In recent news, Oklo Inc. (NYSE:OKLO) announced that its subsidiary, Atomic Alchemy Inc., kicked off the site characterization work at a potential location for a commercial radioisotope production facility at the Idaho National Laboratory.

The milestone builds on Atomic Alchemy’s progress with prior approvals and agreements, including a Memorandum of Understanding secured in 2020 with the US Department of Energy Idaho Operations Office (DOE-ID) to identify a suitable location to site the project at INL, as well as a license in late November that authorized initial site characterization activities.

The site characterization activities include core borings to collect soil and rock samples that will provide essential data on subsurface composition and ensure that the production facility meets stringent safety and building code requirements while supporting the design of a robust structural foundation.

7. Strategy Incorporated (NASDAQ:MSTR)

Strategy Inc. dropped its share prices by 7.65 percent on Tuesday to close at $373.3 apiece as investors resorted to profit-taking while repositioning portfolios ahead of key economic deadlines.

Strategy Incorporated (NASDAQ:MSTR) dropped alongside the wider market as investors await developments by the July 9 deadline for tariff negotiations with the US, as well as the One Big Beautiful Bill Act which was targeted to be sent to the White House on July 4.

In other news, Strategy Incorporated (NASDAQ:MSTR) announced the general availability of Strategy Mosaic, an AI-powered Universal Intelligence Layer designed to enable AI applications.

The Strategy Mosaic aims to address issues and challenges with siloed systems that lead to inconsistent metrics and governance gaps through connecting disparate data sources across the enterprise.

“With Mosaic, we’ve broken through the biggest barriers to business innovation: data silos, conflicting metrics, and high data transformation costs,” said Chief Product Officer Saurabh Abhyankar. ”Our powerful semantic graph ensures a single source of truth for enterprise analytics, and Mosaic extends this with a universal layer of intelligence compatible with any cloud, reporting tool, and data source.”

6. Burford Capital Limited (NYSE:BUR)

Burford Capital dropped its share prices by 7.85 percent on Tuesday to close at $13.14 apiece as investors resorted to profit-taking following a 22-percent surge in the previous day, thanks to a US court ruling in relation to its litigation case against Argentina.

In the Court order, US District Judge Loretta Preska told Argentina to transfer its YPF shares to BNY Mellon within 14 days and within one business day to the plaintiffs.

Argentinian President Javier Milei, however, vowed to appeal to “defend national interests.”

The case stemmed from Argentina’s 2012 seizure of the 51-percent stake in YPF held by Spain-based Repsol without tendering for shares held by minority investors Petersen Energia Inversora and Eton Park Capital Management.

The plaintiffs were represented by litigation funder Burford Capital Limited (NYSE:BUR), which had expected to receive 35 percent and 73 percent of Petersen and Eton Park’s respective damages.

5. NuScale Power Corporation (NYSE:SMR)

NuScale Power Corporation (NYSE:SMR) declined by 8.7 percent on Tuesday to end at $36.12 apiece, in line with the general market pessimism, as investors stayed on the sidelines ahead of developments in the macroeconomic environment.

In recent news, NuScale Power Corporation (NYSE:SMR) partnered with GSE Solutions for the development of a hydrogen fuel cell generation and storage plant simulation model to support the former’s hydrogen simulator project.

The initiative forms part of the broader research to provide clean water and efficient hydrogen production technologies.

Following the partnership, a single NuScale power module (NPM) coupled with a reverse osmosis desalination system is expected to yield 150 million gallons of clean water daily without generating carbon dioxide.

Twelve NPMs provide desalinated water for a city of 2.3 million residents and electricity for 400,000 homes.

4. Archer Aviation Inc. (NYSE:ACHR)

Archer Aviation saw its share prices decrease by 8.94 percent to close at $9.88 apiece on July 1st after an executive disposed of $1 million worth of shares in the company. The transaction was disclosed on July 1st after the markets closed and JOBY shares also lost 7% of their value on the same day. So, the large decline in ACHR shares is probably a result of investor concerns over valuations of these high-flying stocks.

According to a regulatory filing, Archer Aviation Inc. (NYSE:ACHR) General Counsel Eric Lentell sold more than 95,000 ACHR shares at a price of $10.6 for a total of $1.01 million. “I sold a certain number of RSUs that had previously vested. I still hold close to 1M RSUs and you can see that in our recent proxy disclosure in connection with our 2025 Annual Meeting of Shareholders,” Eric Lentell told Insider Monkey in an email.

In other news, Archer Aviation Inc. (NYSE:ACHR) partnered with JetEx for an infrastructure development for air taxis in the United Arab Emirates.

Under the partnership, the two companies plan to enhance Jetex’s strategically located fixed base operator (FBOs) locations to better suit Archer’s Midnight aircraft.

Archer plans to work with Jetex to design the passenger experience and integrate eVTOL aircraft into daily operations. The upgrades will be paired with Jetex’s luxury service standards to deliver an efficient, tech-enabled customer journey.

3. Nebius Group N.V. (NASDAQ:NBIS)

Nebius Group dropped its share prices by 9.07 percent on Tuesday to close at $50.31 apiece as investors resorted to profit-taking after reaching an all-time high in the previous day.

On Monday, Nebius Group N.V. (NASDAQ:NBIS) soared to as high as $55.75 before paring gains to end the day slightly lower. Traders, however, took advantage of the Tuesday’s session to take profits while repositioning portfolios ahead of key economic developments.

Last week, Nebius Group N.V. (NASDAQ:NBIS) earned a bullish comment from Mad Money host and former hedge fund manager Jim Cramer, believing that the company “is going higher.”

In recent news, Nebius Group N.V. (NASDAQ:NBIS) partnered with Saturn Cloud to deliver a turnkey AI/ML infrastructure solution built on NVIDIA Hopper GPUs and with support for the NVIDIA AI Enterprise software stack.

The solution brings together the power and flexibility of Nebius’s AI cloud with Saturn Cloud’s MLOps platform. It enables anyone to sign up instantly to use Jupyter notebooks or other IDEs, run jobs and deployments, and manage cloud resources on NVIDIA Hopper GPUs via Nebius’s infrastructure. The service is available at significantly lower cost than traditional cloud service providers, providing a compelling solution for all types of use cases.

2. TMC the metals company Inc. (NASDAQ:TMC)

TMC dropped its share prices by 10 percent on Tuesday to close at $5.94 apiece amid the broader market pessimism, and following the completion of Korea Zinc’s investment in the company.

Last month, TMC the metals company Inc. (NASDAQ:TMC) announced a strategic investment agreement with South Korea-based Korea Zinc, a non-ferrous metal refining and precursor Cathode Active Material (pCAM) technology company, for the acquisition of 19.6 million common shares at a price of $4.34 apiece for $85 million.

Under the agreement, Korea Zinc was given a three-year warrant to purchase 6.9 million common shares with an exercise price per share of $7 apiece.

With the official closing, Korea Zinc is now one of TMC’s largest strategic shareholders with ownership of approximately 5 percent of the company’s outstanding common shares.

“Following the closings of these financings, the Company’s cash balance is approximately $122.8 million as of June 30, 2025,” TMC the metals company Inc. (NASDAQ:TMC) said.

1. Progress Software Corporation (NASDAQ:PRGS)

Progress Software snapped a three-day winning streak on Tuesday, shedding 13 percent to close at $55.52 apiece, as investors may have already priced in its earnings performance for the second quarter of the year following earlier growth indications.

In the second quarter ending May 31, 2025, Progress Software Corporation (NASDAQ:PRGS) firmed up its strong earnings performance, booking a 5-percent increase in its net income at $17 million versus the $16 million registered in the same period last year.

Revenues increased by 36 percent to $237 million from $175 million year-on-year, resulting in annualized recurring revenue (ARR) of $838 million or 46 percent year-over-year growth.

In a separate statement, Progress Software Corporation (NASDAQ:PRGS) also announced its acquisition of Nuclia, an innovator in agentic Retrieval-Augmented Generation AI solutions.

Nuclia provides unique, easy-to-use agentic RAG-as-a-service technology enabling organizations to automatically leverage their own proprietary business information to retrieve verifiable, accurate answers using GenAI.

While we acknowledge the potential of PRGS 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 PRGS and that has 100x upside potential, check out our report about this cheapest AI stock.

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