Historically, the S&P 500’s performance in January sets the pace for the rest of the year. According to Jared Blikre, Yahoo Finance Markets Editor, the S&P 500 returned nearly 17% in January, which is pretty impressive because a positive January usually translates as a positive year for the markets. Jared also added that while the energy and utilities sectors are lagging, the communication services and healthcare segments are showing signs of strength.
At the same time, while the S&P 500 remained positive at the end of January, some stocks declined due to various reasons especially the launch of the Chinese OpenAI rival, DeepSeek, and new regulations amid the new administration.
15 companies in diverse sectors such as the financials, biotechnology, healthcare, technology, and energy industries, declined due to unsupportive market conditions, macroeconomic environment, and other factors. That said, let’s take a look at the 15 stocks that took a nosedive in January.
To come up with the 15 names, we only considered stocks with a market capitalization of more than $2 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the 15 with the largest 30-day decline from January 3, 2024, to February 3, 2025.
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These 15 Stocks Took a Nosedive in January
15. Viking Therapeutics, Inc. (NASDAQ:VKTX)
30-day Decline as of February 3, 2025: 23.6%
Viking Therapeutics, Inc. (NASDAQ:VKTX) is one of the stocks that nosedived in January, going from $42.98 to $32.75 on February 3. VKTX is a biotechnology company that is committed to the development of treatments for patients suffering from metabolic and endocrine disorders.
The stock surged significantly in the past year, by nearly 28%, but it has been on a downward trajectory for some months now, down 40% over the past six months and nearly 24% over the past thirty days. This has led investors and analysts to think that the stock had been overbought previously due to its revolutionary therapies yet to be launched.
Although Viking Therapeutics, Inc. (NASDAQ:VKTX) may take some time to start showing sound financial performance, analysts remain bullish on the stock, with their median price target representing an upside of 249%. In addition, analyst firms like B. Riley and Jefferies celebrate shared optimism about the stock thanks to its robust obesity therapy pipeline, expecting the stock to more than double.
14. PG&E Corporation (NYSE:PCG)
30-day Decline as of February 3, 2025: 24.7%
PG&E Corporation (NYSE:PCG) is a gas company that engages in the sale and delivery of natural gas and electric services to residential and business customers in Northern and Central California.
The stock marked a 24.7% decline in its share price over the past 30 days, going from $20.4 to $15.37 on February 3. On January 27, Nicholas Campanella, an analyst at Barclays, lowered his price target on PCG from $24 to $23, keeping an overweight rating on the stock. While the analyst firm is bullish on the sector, he suggests that the valuations are not demanding.
Similarly, on January 30, analyst firm UBS cut its price target of PG&E Corporation (NYSE:PCG) from $24 to $22, keeping a buy rating on the stock. The decision to reduce the firm’s price target came after rising concerns over the durability and stability of the California wildfire fund because of fires outside of the company’s territory.
13. Manhattan Associates, Inc. (NASDAQ:MANH)
30-day Decline as of February 3, 2025: 24.8%
Manhattan Associates, Inc. (NASDAQ:MANH) registered a share price of $205.07 on February 3, marking a 24.8% decline from its share price on January 3. MANH is a software company that develops warehouse management solutions and supply chain and commerce-related applications.
The stock witnessed a steep decline in its share price on January 29, going from $295.1 to $222.84 in just one day. Since the decline, the stock has been on a downward trajectory despite reporting solid Q4 results. On January 27, George Kurosawa, an analyst at Citi, lowered his price target on the firm from $306 to $303, keeping a neutral rating on the stock.
The decline in share price and dwindling investor sentiment was largely due to the company’s guidance for 2025. The company’s projections for 2025 were much lower than expected, raising concerns about the stock in the market. Despite that, analysts are bullish on the stock, and their median price target of $307.5 points to an upside of 54%.
12. Fluence Energy, Inc. (NASDAQ:FLNC)
30-day Decline as of February 3, 2025: 25.0%
Fluence Energy, Inc. (NASDAQ:FLNC) provides energy storage solutions optimized for the common customer. The stock went from $17.35 on January 3, to $13.01 on February 3, a decline of 25%. While the stock registered a general downward trend during the month, FLNC’s share price fluctuated quite rapidly throughout.
On January 22, analyst firm, Jefferies, downgraded the stock from a buy to a hold rating, lowering the price target from $22 to $15. The analyst firm downgraded its rating because prices in the sector are declining rapidly, which may lead to lower margins for the firm. In addition to that, the analyst firm pointed to increasing competition from China offering similar products at a much lower price.
The analyst also added that the company’s strategy going forward is unclear, increasing uncertainty around the stock until later in 2025. The analyst expects to see positive results from the firm in the second half of 2025, which is a very stretched-out time for investors.
11. e.l.f. Beauty, Inc. (NYSE:ELF)
30-day Decline as of February 3, 2025: 25.2%
e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks that nosedived in January, declining by more than 25%. The stock had a share price of $125.39 on January 3, which decreased to $93.74 on February 3.
e.l.f. Beauty, Inc. (NYSE:ELF) is a beauty company that is committed to providing clean, vegan, and cruelty-free cosmetics and skin care products. In the past 30 days, the company saw a downward trajectory with declining investor sentiment in the firm.
On January 21, Dara Mohsenian, an analyst at Morgan Stanley, suggested that ELF was growing much slower, as the wildfires have put immense pressure on the beauty industry. The analyst firm has an overweight rating on the stock with a price target of $153.
Similarly, on February 3, Mark Astrachan, an analyst at Stifel, lowered his price target on the firm from $115 to $105, keeping a hold rating on the stock. While the firm has high expectations for the fiscal years 2025 and 2026, the analyst remains cautious of volatility in the US market, especially in sales trends.
10. Mercury General Corporation (NYSE:MCY)
30-day Decline as of February 3, 2025: 25.5%
Mercury General Corporation (NYSE:MCY) is an insurance company that provides coverage across auto, home, renters, and business insurance lines, with a particular focus on automobiles and homeowners insurance. The stock registered a 25.5% decline in its share price over the past 30 days going from $65.74 to $48.95 on February 3.
The Californian insurance company saw a significant decline in its share price as wildfires continued to burn. The decline came in shortly after state authorities issued evacuation orders for thousands of people residing in the region. Following the decision, Mercury General Corporation (NYSE:MCY) announced that it was prepared to help homeowners, renters, and auto policyholders who had to evacuate.
On January 20, Mercury General Corporation (NYSE:MCY) provided an update on the recent wildfires in Southern California and its latest reinsurance program. The company stated that it received multiple claims and is using aerial images to conclude if properties are categorized as total losses. The report also mentioned that the company had already paid $80 million to policyholders for living expenses and housing contracts.
9. Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
30-day Decline as of February 3, 2025: 26.7%
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) registered a share price of $39.98 on February 3, marking a 27% decline from its share price on January 3. CRNX is a pharmaceutical company that develops therapies for people with endocrine diseases.
Early in January, the stock saw a steep decline amid safety and health concerns following the release of critical trial data. On January 11, Dennis Ding, an analyst at Jefferies maintained a hold rating on the stock and set a price target of $55. Ding gave a hold rating on the stock over its recent trial data for a drug, which raised concerns over its efficacy.
The analyst also highlighted that while the therapy showed promising signs, the performance fell short, explaining the decline in its share price. He also added that while these concerns hold, the stock remains expensive. This coupled with high investor expectations, the data from the trial had to be stronger. Despite this, analysts are bullish on the stock, and their median price target points to an upside of 91% from current levels.
8. Abercrombie & Fitch Co. (NYSE:ANF)
30-day Decline as of February 3, 2025: 27.5%
Abercrombie & Fitch Co. (NYSE:ANF) is a lifestyle retailer based in the United States. The stock went from $158.92 on January 3, to $115.29 on February 3, a decline of 27.5%. While the stock registered a general downward trend during the month, ANF saw its stock price dwindle significantly between January 10 and January 13.
On January 14, analyst firm, Raymond James, lowered its price target for Abercrombie & Fitch Co. (NYSE:ANF) from $180 to $165, keeping an outperform rating on the stock. The decision to decrease the price target is attributed to ANF’s revenue beat not being strong enough and the margin guidance being significantly lower, despite the company raising its Q4 revenue guidance.
Similarly, on January 15, Alex Straton, an analyst at Morgan Stanley lowered his price target on Abercrombie & Fitch Co. (NYSE:ANF) from $149 to $139, keeping an equal weight rating on the stock. The analyst took this decision after ANF decided to raise its Q4 guidance but maintained its operating margin outlook, which is quite low. Straton emphasized that the decision fuels the bearish outlook on the company, explaining why the stock declined significantly in the middle of January.
7. Edison International (NYSE:EIX)
30-day Decline as of February 3, 2025: 32.3%
Edison International (NYSE:EIX) is one of the stocks that nosedived in January, declining by more than 32%. The stock had a share price of $79.8 on January 3, which declined to $54 on February 3. The stock experienced a major decline in investor sentiment in the first month of 2025.
Edison International (NYSE:EIX) is an electric power distribution company that provides clean and reliable energy and energy services through its subsidiaries. On January 23, Nicholas Campanella, an analyst at Barclays, lowered his price target on the firm from $76 to $67, keeping an overweight rating on the stock, following its Q4 earnings. At the same time, the analyst suggests that the market cap loss for the firm due to wildfires is excessive and overdone.
On the same day, analyst firm, Guggenheim, downgraded the stock from a buy rating to a neutral rating, lowering its price target to $60 from $91. The analyst firm suggested that the group is oversold and undervalued, with opportunities to outperform in 2025. In addition to that, the firm believes that the sector is set to offer growth at a reasonable price.
6. Globalstar, Inc. (NYSE:GSAT)
30-day Decline as of February 3, 2025: 33.4%
Globalstar, Inc. (NYSE:GSAT) is a telecommunications company that provides reliable and portable satellite communication solutions allowing people to stay connected everywhere. The stock registered a 33.4% decline over the past 30 days, going from $2.2 to $1.47 apiece on February 3.
Shares of GSAT declined following AAPL’s decision to partner with SpaceX, expanding its usage of Starlink satellite internet service. Back in 2022, Apple partnered with Globalstar, Inc. (NYSE:GSAT) in 2022 in an attempt to utilize the company’s services for connectivity in remote areas for its iPhones.
While AAPL’s decision to onboard Starlink does not impact GSAT directly, analysts expect that AAPL may switch to Starlink entirely, leaving behind Globalstar, Inc. (NYSE:GSAT), explaining its decline. Despite the decline, analysts remain bullish on the stock with their median price target of $4.5 representing an upside of 197%.
5. FTAI Aviation Ltd. (NASDAQ:FTAI)
30-day Decline as of February 3, 2025: 33.9%
FTAI Aviation Ltd. (NASDAQ:FTAI) struggled quite a bit in January, marking a nearly 34% decline in share price through the 30 days. During the period, the company registered the largest decline between January 14 and January 15, going from $153.29 to $116.08 in just one day.
FTAI Aviation Ltd. (NASDAQ:FTAI), also referred to as the Fortress Transportation and Infrastructure Investors, is one of the leading suppliers of aftermarket power and maintenance to commercial jet engines. The stock declined following a short seller’s report, which could significantly delay its financial statements.
On January 22, analyst firm Stifel lowered its price target on FTAI from $167 to $100, keeping a buy rating on the stock. The decision came after the CEO of FTAI Aviation Ltd. (NASDAQ:FTAI) responded to the Muddy Waters short report. The transcript suggested that the CEO addressed the claims but did not explain how many modules were being sold relative to whole engines.
4. Agilysys, Inc. (NASDAQ:AGYS)
30-day Decline as of February 3, 2025: 34.5%
Agilysys, Inc. (NASDAQ:AGYS) is a software company that develops software and other enterprise products for businesses in the hospitality industry. AGYS’s stock price reached $87.31, registering a 34.5% decline from $133.26 apiece on January 3.
During the period, the stock saw a significant decline between January 21 and January 27, going from $125.9 to $89.73. On January 22, analyst firm, Oppenheimer lowered its price target of Agilysys, Inc. (NASDAQ:AGYS) from $150 to $135, keeping an outperform rating on the stock.
The analyst firm highlighted that the stock missed Street expectations for its fiscal third-quarter guidance, due to a decline in revenue. According to the firm, the decline was due to the widening cycle in the POS space. On the same day, analyst firm, Needham, lowered its price target for the stock from $145 to $125 for similar reasons.
Despite the steep decline, the stock does have a strong upside for its subscription business and a solid momentum, urged the two analyst firms. Overall, analysts maintain a bullish outlook on the stock with their median price target of $145 pointing to an upside of 67%.
3. Astera Labs, Inc. (NASDAQ:ALAB)
30-day Decline as of February 3, 2025: 34.6%
Astera Labs, Inc. (NASDAQ:ALAB) is a purpose-built connectivity lab for AI and cloud infrastructure. The company designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI.
Based in California, the company saw a 34.6% decline in the past 30 days, going from $140.93 on January 3, to $92.11 on February 3. ALAB also saw a steep decline between January 24 and January 27, declining to $83.16 from $115.55.
Astera Labs, Inc. (NASDAQ:ALAB) saw a steep decline in its share price after the launch of OpenAI’s rival, DeepSeek, made an entry into the market. The Chinese AI startup shook the market, raising concerns over companies in the US pouring billions into AI.
However, at the same time, despite the decline, some analysts maintain a bullish outlook on the stock. For example, on January 28, analyst firm Northland, upgraded its rating on Astera Labs, Inc. (NASDAQ:ALAB) from market perform to outperform, with a price target of $120. The analyst firm emphasized that despite concerns about heavy spending in AI, BigTech is unlikely to cut costs, creating a solid opportunity for companies like ALAB.
2. SoundHound AI, Inc. (NASDAQ:SOUN)
30-day Decline as of February 3, 2025: 35.5%
SoundHound AI, Inc. (NASDAQ:SOUN), an emerging AI company, went from $20.62 on January 3 to $13.34 on February 3, marking a 35.5% decline over 30 days. During this period, the company registered the largest decline from $19.89 on January 6 to $12.82 on January 13.
SoundHound AI, Inc. (NASDAQ:SOUN), a conversational intelligence company, has grown by 788% in the past year. However, SOUN was unable to maintain the upward trajectory in January, following the CES trade show. Despite having displayed groundbreaking technologies such as its in-vehicle voice assistant, the stock declined because of elevated investor expectations.
In addition to that, despite NVIDIA having an investment in SOUN, the CEO left the event without mentioning the stock. While the stock has been performing poorly since the CES trade show, the stock declined even further following the launch of the Chinese startup, DeepSeek.
Despite the rough start to the year, SoundHound AI, Inc. (NASDAQ:SOUN) maintains solid goals for the rest of the year, with its projections expected to double by the end of the year. In addition to that, the company is also expanding its footprint by securing deals with major companies across the globe like LCID.
1. Rigetti Computing, Inc. (NASDAQ:RGTI)
30-day Decline as of February 3, 2025: 35.7%
Rigetti Computing, Inc. (NASDAQ:RGTI), a quantum computing stock, declined by nearly 36% over the past 30 days, going from $19.02 to $12.25 on February 3, 2025. Over the past 30 days, the company saw a steep decline in its share price on January 8, going from $18.39 to $10.04 in just one day.
The reason behind this steep decline was the bearish comments on the quantum computing industry from NVIDIA’s CEO, Jensen Huang, accompanied by certain macroeconomic risks. Huang suggested that quantum computers were not the ideal solution for computing issues, bringing down stocks like RGTI in the quantum space. He also suggested that quantum computing technology will not be available for commercial use any time soon, maintaining a less optimistic outlook on the industry.
However, despite that, the stock boasts a market capitalization of $3.15 billion, as of February 3, and is a favorite among analysts. For instance, on January 27, analyst firm Needham, raised its price target on RGTI from $2 to $17, keeping a buy rating on the stock. The analyst firm maintained a bullish stance on the quantum computing sector, appreciating the technical milestones achieved by RGTI and its likes.
While we acknowledge the potential of RGTI to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
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