Ten companies lost their steam on Wednesday, bucking a wider market rally, as current news failed to spark investor excitement for their stocks.
On Wall Street, the Nasdaq increased by 0.94 percent, the S&P 500 grew by 0.61 percent, and the Dow Jones was up by 0.49 percent.
In this article, let us explore Wednesday’s 10 worst-performing mid-cap companies, alongside 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. MP Materials Corp. (NYSE:MP)
MP Materials dropped its share prices by 3.72 percent on Wednesday to end at $30.03 apiece as investors sold off positions following the recent stock rating downgrade from an investment firm.
In a market note, Jefferies downgraded its rating for MP Materials Corp.’s (NYSE:MP) stock to “hold” from “buy” previously, but raised its price target to $33 from $32 previously. The new figure marked a 9.9-percent upside from its latest closing price.
According to Jefferies, the downward revision was based on China’s decision to ease up on rare earth export restrictions for a short-term period after mounting calls from affected industries globally to loosen up.
Jefferies said the temporary easing would reduce the risk of near-term rare earth shortages in the market.
Investors of MP Materials Corp. (NYSE:MP) viewed China’s move in a negative light for as the exports easing could weaken its pricing power with higher supply and increased competition with Chinese counterparts.
9. Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group declined by 3.85 percent on Wednesday to end at $103.83 per share as investor sentiment was dampened by the cut-throat competition between the company and JD.com in servicing the expanding online market in China.
This followed JD.com’s pledge on Wednesday to allocate some 10 billion yuan ($1.4 billion) to support so-called benchmark brands across various categories amid the growing daily orders in China, reaching a new high of over 200 million.
The plan reflected JD.com’s efforts to dethrone Meituan as China’s top on-demand local delivery services provider, while also fending off competition from Alibaba Group Holding Limited (NYSE:BABA).
Earlier this month, Alibaba and Meituan went on a promotional war, flooding the market with discount coupons that allowed consumers to buy at unusually low prices.
The program was said to have pushed delivery riders to work on extended hours to meet the surging demand.
Meanwhile, Alibaba Group Holding Limited (NYSE:BABA) announced recently that it successfully raised HK$12 billion ($1.5 billion) through the issuance of a bond offer through 2032.
8. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)
Ericsson dropped for a second day on Wednesday, losing 4.04 percent to close at $8.19 apiece as investors remained cautious about tariff uncertainties between the US and the European Union.
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), a Swedish company, repeatedly cautioned this year that any US tariffs on European imports could affect its profit margins by around one percentage point.
“With the current tariffs coming, now we see approximately one percentage point impact on the margin for Q2,” Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) CFO Lars Sandstrom was quoted as saying in an interview with Reuters.
In recent news, the EU said it remained hopeful that it would be able to strike a trade deal with the US in the coming days that would avoid the import taxes on its goods.
Tariffs were supposed to take effect on July 9 for goods entering the US, but President Donald Trump announced an extension for talks until August 1.
7. Core Scientific Inc. (NASDAQ:CORZ)
Core Scientific fell for a third day on Wednesday, shedding another 4.21 percent to close at $13.43 each as investor sentiment was dampened by news that it was being investigated by a shareholder law firm over its proposed sale to CoreWeave, Inc. (NASDAQ:CRWV).
In a statement, former Louisiana attorney general Charles Foti, Jr., teamed up with law firm Kahn Swick & Foti, LLC to initiate a probe into Core Scientific Inc. (NASDAQ:CORZ) looming all-stock merger with CoreWeave.
Under the terms of the agreement, Core Scientific, Inc. (NASDAQ:CORZ) stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio.
“KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the company,” the law firm said.
For his part, Core Scientific, Inc. (NASDAQ:CORZ) President and CEO Adam Sullivan believed that the planned merger will position the company to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for shareholders.
6. TMC the metals company Inc. (NASDAQ:TMC)
TMC dropped its share prices for a third straight day, losing 4.42 percent to close at $6.27 apiece as investors continued to unload positions amid uncertainties in the resumption of deep-sea mining talks.
This is after the International Seabed Authority (ISA) announced the revival of negotiations on the controversies surrounding deep-sea mining, following President Donald Trump’s order last April to fast-track permits for deep-sea mining even beyond US waters, taking advantage of its non-membership in the organization.
Sentiment was further dampened by TMC, the metals company Inc.’s (NASDAQ:TMC) bypassing of the ISA after its immediate submission of its first offshore license application, despite being a Canadian company and with Canada being a member of the organization.
In recent news, TMC the metals company Inc. (NASDAQ:TMC) earned an “outperform” rating from Wedbush and an $11 price target, a significant upgrade from its “neutral” stance and $6 price target previously.
According to Wedbush, the upgrade was based on a stronger US government from President Donald Trump’s executive order in April, “Unleashing America’s Offshore Critical Minerals and Resources,” which could allow TMC the metals company Inc. (NASDAQ:TMC) to bypass the UN-affiliated International Seabed Authority and ramp up production in the Clarion Clipperton Zone.
5. Lyft, Inc. (NASDAQ:LYFT)
Lyft dropped its share prices by 4.8 percent on Wednesday to end at $15.66 each as investors unloaded positions amid the lack of catalysts to support investing appetite, while already pricing in its recent entry into the Puerto Rican market.
Earlier this week, Lyft, Inc. (NASDAQ:LYFT) announced the official launch of its ride-sharing service in Puerto Rico as part of its expansion plans in North America and Europe.
The company began recruiting drivers late in May, promising $100 bonuses to those who could complete 50 rides in the first month in San Juan.
“There’s obviously a deep connection between many folks who are in the mainland United States who have connections in Puerto Rico,” said Lyft, Inc. (NASDAQ:LYFT) EVP Jeremy Bird, who is overseeing driver experience and the company’s international expansion.
According to Bird, there is a strong demand for the company’s services from locals and tourists from places like New York and Chicago.
4. Cinemark Holdings, Inc. (NYSE:CNK)
Cinemark Holdings declined by 5.97 percent on Wednesday to end at $28.81 apiece as investor sentiment was dampened by an investment firm’s reduced price target for its stock.
In a market note, Roth Capital lowered its price target for Cinemark Holdings, Inc. (NYSE:CNK) to $35 from $36 previously, but maintained its “buy” recommendation for its stock. Still, the new price target marked a 21.5 percent upside from its latest closing price.
According to Roth Capital, Cinemark Holdings, Inc. (NYSE:CNK) is beginning to benefit from a content cycle spanning over two years, and is expected to contribute to margin growth, increased free cash flows, and higher capital returns.
Meanwhile, Cinemark Holdings, Inc. (NYSE:CNK) is expected to release the results of its earnings performance in the second quarter period in the first week of August 2025.
Earlier this year, Cinemark Holdings, Inc. (NYSE:CNK) already hinted at a more favorable second quarter performance, with President and CEO Sean Gamble saying that the said period “is already pacing well ahead of 2024’s box office results, showcasing the strong, sustained enthusiasm consumers have for experiencing a diverse range of compelling, well-marketed films in theaters.”
3. Uranium Energy Corp. (NYSEAmerican:UEC)
Uranium Energy fell for a third day on Wednesday, dropping 6.33 percent to close at $5.92 apiece, mirroring the 0.95-percent drop in the uranium sector and the broader decline in the energy industry.
During the session, investors appeared to have unloaded positions due to the lack of fresh leads to boost buying appetite.
In recent news, Uranium Energy Corp. (NYSEAmerican:UEC) boosted its stake in Anfield Energy Inc. to 32.4 percent following the acquisition of 170 million common shares for CA$19.5 million through a private placement.
“The Anfield shares were acquired by the company for investment purposes,” Uranium Energy Corp. (NYSEAmerican:UEC) said, adding that it will continue to monitor the business, prospects, financial condition, and potential capital requirements of Anfield.
“Depending on its evaluation of these and other factors, the company may from time to time in the future decrease or increase, directly or indirectly, its ownership, control or direction over securities of Anfield through market transactions, private agreements, [and] subscriptions from treasury,” among others, Uranium Energy Corp. (NYSEAmerican:UEC) said.
2. AST SpaceMobile, Inc. (NASDAQ:ASTS)
AST SpaceMobile dropped for a second day on Wednesday, losing 6.51 percent to close at $42.5 apiece as investors appeared to have parked funds while on a wait-and-see mode for more catalysts to boost buying.
AST SpaceMobile, Inc. (NASDAQ:ASTS), a satellite company, is set to announce the results of its earnings performance in the second quarter period on August 14, based on its historical reporting dates.
According to investment firm Zacks, it is anticipated that AST SpaceMobile, Inc. (NASDAQ:ASTS) will report an EPS of -$0.19, or a 35.71 percent decline from the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.15 million, indicating a 472.22 percent increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$1 per share and revenue of $62.5 million, which would represent changes of -51.52 percent and +1314.58 percent, respectively, from the prior year.
1. Mobileye Global Inc. (NASDAQ:MBLY)
Mobileye Global dropped its share prices by 7.08 percent on Wednesday to end at $17.32 apiece as investor sentiment was dampened by Intel Corp.’s unloading of shares worth $900 million in the company.
In a statement, Mobileye Global Inc. (NASDAQ:MBLY) said that Intel Corp.’s subsidiary, Intel Overseas Funding Corporation, plans to sell 50 million MBLY Class A common shares at a price of $16.5 apiece for a total of $825 million.
It also granted its underwriters an option to purchase an additional 7.5 million shares for a total of $123.75 million.
If fully subscribed, the transaction would be worth a total of $948.75 million.
Meanwhile, Mobileye Global Inc. (NASDAQ:MBLY) said that it would buy back more than 6.2 million shares upon the conclusion of the share sale at a price per share equal to the per share purchase price to be paid by the underwriters in the offering.
Additionally, Intel expressed its intention to convert 50 million of its MBLY Common B shares to Common A shares, which it would hold at this time.
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