10 Biggest Losers on Thursday

Published on September 1, 2022 at 4:20 pm by Fahad Ali Khan in News

In this article, we will take a look at the 10 biggest losers of this morning.

Tech stocks, including NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Okta, Inc. (NASDAQ:OKTA), fell sharply before the opening bell today.

Shares of NVIDIA Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) dropped after the U.S. government restricted the two companies from exporting certain high-performance chips to China. On the other hand, Okta, Inc. (NASDAQ:OKTA) shares tumbled apparently after its senior executives pointed toward near-term challenges related to its merger with Auth0.

Many other companies, including MongoDB, Inc. (NASDAQ:MDB) and Veeva Systems Inc. (NYSE:VEEV), also lost significant value in mid-day trading Thursday. Check out the complete article below to find what sent these stocks down.

Image by Sergei Tokmakov Terms.Law from Pixabay

10. Lands’ End, Inc. (NASDAQ:LE)

Number of Hedge Fund Holders: 13

Lands’ End, Inc. (NASDAQ:LE) swung to a loss in the second quarter and trimmed its financial outlook for the full year, sending its shares down more than 14 percent this morning. The clothing and home decor retailer reported a loss of 7 cents per share, compared to a profit of 48 cents per share in the year-ago period.

In addition, Lands’ End, Inc. (NASDAQ:LE) posted revenue of $351.2 million, down 8.6 percent over the corresponding period of 2021. Nevertheless, the results were better than analysts’ average estimate for a loss of 14 cents per share on revenue of $343.3 million.

For the full year, Lands’ End, Inc. (NASDAQ:LE) now expects earnings in the range of 49 – 70 cents per share and revenue between $1.60 – $1.64 billion. Previously, it was looking for EPS of 60 – 80 cents and revenue of $1.62 – $1.68 billion.

9. SentinelOne, Inc. (NYSE:S)

Number of Hedge Fund Holders: 26

Shares of SentinelOne, Inc. (NYSE:S) fell over seven percent this morning despite announcing better-than-expected financial results for its fiscal second quarter. The cybersecurity company reported an adjusted loss of 20 cents per share, narrower than analysts’ average estimate for a loss of 25 cents per share.

Revenue for the quarter skyrocketed 124 percent on a year-over-year basis to $102.5 million, while analysts expected SentinelOne, Inc. (NYSE:S) to generate revenue of $95.64 million. Annualized recurring revenue (ARR) also climbed 122 percent to $438.6 million in the quarter.

Looking forward, SentinelOne, Inc. (NYSE:S) expects revenue of about $111 million for its fiscal third quarter and between $415 – 417 million for its fiscal year 2023.

8. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 27

Hormel Foods Corporation (NYSE:HRL) missed profit expectations for its fiscal third quarter and issued a weak outlook for the full year. As a result, its shares fell over six percent after the opening bell on Thursday.

The Austin-based food processing company reported earnings of 40 cents per share on revenue of $3.03 billion. On the other hand, analysts expected Hormel Foods Corporation (NYSE:HRL) to earn 41 cents per share on revenue of $2.98 billion.

For the full year, Hormel Foods Corporation (NYSE:HRL) now expects adjusted earnings in the range of $1.78 – $1.85 per share, down from its earlier projection between $1.87 – $1.97 per share. The updated outlook is below the consensus of $1.88 per share.

7. Campbell Soup Company (NYSE:CPB)

Number of Hedge Fund Holders: 27

Campbell Soup Company (NYSE:CPB) released its fiscal fourth-quarter results on Thursday morning. While the food and snack company met financial expectations for the quarter, it expects inflationary pressures to persist in the near term. The cautious comments about elevated inflation apparently sent its shares down before the opening bell today.

For its fiscal third quarter, Campbell Soup Company (NYSE:CPB) reported earnings of 56 cents per share, matching expectations. Its quarterly revenue of $2 billion was marginally above the consensus of $1.99 billion.

Looking forward, Campbell Soup Company (NYSE:CPB) projected adjusted earnings in the range of $2.85 – $2.95 per share for its fiscal year 2023. The midpoint of the guidance was slightly below analysts’ average estimates of $2.92 per share.

Like Campbell Soup Company (NYSE:CPB), NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Okta, Inc. (NASDAQ:OKTA) were also on the list of 10 biggest losers on Thursday.

6. Semtech Corporation (NASDAQ:SMTC)

Number of Hedge Fund Holders: 31

Shares of Semtech Corporation (NASDAQ:SMTC) hit a new 52-week low of $29.59 this morning after Oppenheimer downgraded the supplier of analog and mixed-signal semiconductors from “Outperform” to “Perform,” citing its weak outlook for the current quarter.

Moreover, Benchmark also cut its price target for Semtech Corporation (NASDAQ:SMTC) from $81 per share to $65 per share, citing the same reason. The latest coverage from these research firms came after Semtech Corporation (NASDAQ:SMTC) issued its fiscal third-quarter guidance that fell short of expectations.

Semtech Corporation (NASDAQ:SMTC) projected adjusted earnings of about 63 cents per share on revenue of approx. $175 million for the current quarter. The guidance missed Wall Street’s expectations of 90 cents per share for earnings and $215.6 million for revenue.

5. Veeva Systems Inc. (NYSE:VEEV)

Number of Hedge Fund Holders: 45

Veeva Systems Inc. (NYSE:VEEV) announced better-than-expected financial results for its fiscal second quarter. However, its sales forecast for the current quarter and full year fell short of estimates, sending its shares down about 12 percent before the opening bell on Thursday.

The cloud-computing company reported adjusted earnings of $1.03 per share, compared to 94 cents per share in the year-ago period. Revenue for the quarter rose 17 percent versus last year to $534.2 million. Analysts expected Veeva Systems Inc. (NYSE:VEEV) to earn $1.01 per share on revenue of $530 million.

Looking forward, Veeva Systems Inc. (NYSE:VEEV) projected revenue of $545 – $547 million for the current quarter, below the consensus of $558.28 million. Moreover, its full-year sales outlook of $2.14 – $2.145 billion also missed the expectations of $2.17 billion.

4. Okta, Inc. (NASDAQ:OKTA)

Number of Hedge Fund Holders: 47

Shares of Okta, Inc. (NASDAQ:OKTA) plunged to a new low in pre-market trading Thursday. The drop came after the company’s senior management pointed towards near-term challenges revolving around its merger with Auth0.

The cautious comments from management also overshadowed the better-than-expected Q2 results of Okta, Inc. (NASDAQ:OKTA). The San Francisco-based company reported a loss of 10 cents per share, narrower than analysts’ average estimate for a loss of 30 cents per share.

In addition, Okta, Inc. (NASDAQ:OKTA) posted revenue of $452 million, representing a surge of 43 percent over the year-ago period and better than the consensus of $430.68 million. Subscription revenue for the quarter jumped 44 percent to $435 million, accounting for more than 96 percent of the total sales.

Speaking on the results, CEO of Okta, Inc. (NASDAQ:OKTA), Todd McKinnon, said:

“Looking at the second half of the fiscal year, we’re focused on refining the go-to-market strategy for the combined Auth0 and Okta sales organization, strengthening our teams, and making strategic reductions to our spend to improve profitability.”

3. MongoDB, Inc. (NASDAQ:MDB)

Number of Hedge Fund Holders: 55

Shares of MongoDB, Inc. (NASDAQ:MDB) fell over 15 percent before the opening bell today after the software firm projected an adjusted loss in the range of 28 – 35 cents per share for the full year.

The updated forecast was worse than its earlier guidance calling for an adjusted loss of 16 – 31 cents per share. It was also wider than analysts’ average estimate for a loss of 21 cents.

MongoDB, Inc. (NASDAQ:MDB) issued the outlook along with its fiscal Q2 results. The company reported an adjusted loss of 23 cents per share on revenue of $303.7 million for the quarter. Analysts were looking for a loss of 28 cents per share on revenue of $284.4 million.

Discussing the results, CEO of MongoDB, Inc. (NASDAQ:MDB), Dev Ittycheria, said:

“We are seeing robust growth in new workloads being deployed on our platform, which is indicative of the critical role we play in enabling customers to build and run mission critical applications that transform their business.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

Shares of NVIDIA Corporation (NASDAQ:NVDA) slid over four percent in pre-market trading Thursday after the U.S. government restricted the company from exporting certain chips to China.

The U.S. officials imposed the ban over security concerns. NVIDIA Corporation (NASDAQ:NVDA) said it would no longer be exporting its A100 and H100 chips to China. The ban would reduce its sales by $400 million in the current quarter. Nevertheless, NVIDIA Corporation (NASDAQ:NVDA) said it has submitted a request to continue exports of some products to China but isn’t sure if U.S. officials will allow it.

Meanwhile, NVIDIA Corporation (NASDAQ:NVDA) received a price-target cut from a research firm today following the export ban. Bernstein cut its price target for the Delaware-based tech giant from $210 per share to $180 per share.

1. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 87

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) fell over seven percent this morning. Like NVIDIA Corporation (NASDAQ:NVDA), the U.S. government also told AMD to stop selling its high-performance AI chips to China.

Advanced Micro Devices, Inc. (NASDAQ:AMD) said the updated license requirements do not allow the company to export its MI250 chips to the world’s second-biggest economy. On the positive side, the semiconductor giant said it doesn’t see any material impact on its business following the latest development.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) have struggled to gain value so far in 2022. The stock is still down about 47 percent on a year-to-date basis, including today’s drop.

You can also take a peek at 10 Crypto Companies Hit By the Recent Crash and 10 Best Cyclical Stocks for Inflation.

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