Ten stocks finished Thursday’s trading session on a lackluster note, losing as much as double digits, primarily due to dismal earnings performance and a weaker outlook.
The stocks bucked a mostly optimistic broader market, with the tech-heavy Nasdaq and the S&P 500 both up by 0.18 percent and 0.07 percent, respectively. In contrast, the Dow Jones was down by 0.70 percent.
In this article, we name Thursday’s 10 worst-performing stocks and detail the reasons behind their drop.
To compile the list, we focused exclusively on stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.
10. C3.ai, Inc. (NYSE:AI)
C3 AI snapped a two-day rally on Thursday, losing 10.84 percent to close at $26 apiece as investors repositioned portfolios following its chief executive’s announcement that he was stepping down from his post.
In a statement, C3.ai, Inc. (NYSE:AI) said that CEO Thomas Siebel has tendered his resignation due to health reasons, effective upon a successor assuming his post.
“After being diagnosed with an autoimmune disease in early 2025, I have experienced significant visual impairment,” he said.
“For C3 AI to reach its full potential—which I believe is spectacular—the board and I have initiated a search for a new CEO who can take the company to the next level of growth and success. I will remain fully engaged as Chief Executive Officer of C3.ai until such time as the C3.ai board appoints my successor, after which I will continue in the role of Executive Chairman, focusing on strategy, product innovation, strategic partner and customer relationships,” he noted.
Meanwhile, an analyst from Wedbush said that the chief’s resignation presented an opportunity for other firms to acquire C3.ai, Inc. (NYSE:AI).
Wedbush gave C3.ai, Inc. (NYSE:AI) an “outperform” rating and a price target of $35 apiece.
9. Southwest Airlines Co. (NYSE:LUV)
Southwest Airlines snapped a four-day winning streak on Thursday, slashing 11.16 percent to close at $33.26 apiece, as investor sentiment was dampened by a dismal earnings performance and a weaker growth outlook.
In the second quarter of the year, Southwest Airlines Co. (NYSE:LUV) was able to book $213 million in net income, marking a 42-percent drop from the $367 million in the same period last year. Net income for the six-month period also declined by 53.3 percent to $64 million from $137 million year-on-year.
Meanwhile, total operating revenues during the quarter period dipped by 1.5 percent to $7.2 billion from $7.35 billion, while revenues during the first semester were flat at $13.7 billion.
Looking ahead, Southwest Airlines Co. (NYSE:LUV) remained cautious about its business outlook, expecting revenue per available seat mile (RASM) to dip or inch up by 2 percent in the third quarter of the year.
Southwest Airlines Co. (NYSE:LUV) also announced a $2 billion share buyback program for a period of up to two years.
8. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Chipotle Mexican Grill fell by 13.34 percent on Thursday to close at $45.74 apiece as investors digested a mixed earnings performance and weak outlook for the rest of the year.
In its earnings release, Chipotle Mexican Grill, Inc. (NYSE:CMG) said net income for the second quarter of the year dropped by 4.3 percent to $436 million from $455.7 million in the same period last year.
Total revenues, on the other hand, grew by 3 percent to $3.06 billion from $2.97 billion year-on-year, driven by new restaurant openings. Comparable store sales, however, decreased by 4 percent due to lower transactions.
Looking ahead, the company expects same-store sales to remain flat year-on-year, but it is working on initiatives to boost performance, including improving execution, introducing new menu innovations, amplifying the rewards program, and expanding globally.
Additionally, Chipotle Mexican Grill, Inc. (NYSE:CMG) also expects between 25 and 27 percent of tax rate before discrete items for the full year.
7. STMicroelectronics N.V. (NYSE:STM)
STMicroelectronics fell by 15.86 percent on Thursday to close at $26.73 apiece as investor sentiment was weighed down by a dismal earnings performance and weak industry outlook amid tariff uncertainties.
In its earnings release, STMicroelectronics N.V. (NYSE:STM) said it swung to a net loss of $97 million in the second quarter of the year from a $353 million net income in the same period last year.
Net revenues were also lower by 14.4 percent at $2.766 billion from $3.232 billion year-on-year.
Looking ahead, STMicroelectronics N.V. (NYSE:STM) remained cautious about its business outlook for the rest of the year, with revenues for the current quarter expected to decrease by 2.5 percent year-on-year to $3.17 billion, but increase by 14.6 percent on a sequential basis.
“While we expect Q3 revenues to show a solid sequential growth … we are still operating amid an uncertain macroeconomic environment. Given these external factors, our priorities remain supporting our customers, accelerating new product introductions, and executing our company-wide program to reshape our manufacturing footprint and resize our global cost base,” said STMicroelectronics N.V. (NYSE:STM) President and CEO Jean-Marc Chery.
6. Ardagh Metal Packaging S.A. (NYSE:AMBP)
Ardagh Metal dropped its share prices by 16.38 percent on Thursday to close at $3.88 apiece as investors did not seem impressed by its earnings performance in the second quarter of the year.
In a statement, Ardagh Metal Packaging S.A. (NYSE:AMBP) said that revenues increased by 15 percent to $1.455 billion during the period from $1.259 billion in the same quarter last year.
However, net income was only $5 million, albeit higher by 150 percent than the $2 million registered in the same period last year.
Looking ahead, Ardagh Metal Packaging S.A. (NYSE:AMBP) is expected to post adjusted EBITDA between $705-$725 million in the full-year period, with the figure already reflecting both improved underlying performance and favorable currency movements.
“Global beverage can growth continues to benefit from innovation and share gains in our customers’ packaging mix, and we still anticipate only a minimal impact to our business arising from tariff measures announced,” said Ardagh Metal Packaging S.A. (NYSE:AMBP) CEO Oliver Graham.
5. Mattel, Inc. (NASDAQ:MAT)
Toymaker Mattel, Inc. (NASDAQ:MAT) dropped its share prices by 16.39 percent on Thursday to close at $16.89 apiece as investors soured on the company’s dismal earnings performance and lowered revenue guidance for the full year.
In its earnings release, Mattel, Inc. (NASDAQ:MAT) said net income in the second quarter of the year declined by 6 percent to $53.4 million from $56.9 million in the same period last year.
Net sales also decreased by 6 percent to $1.018 billion from $1.08 billion year-on-year.
For the six-month period, net income fell by 54 percent to $13 million from $28.6 million, while net sales dipped by 2 percent to $1.845 billion from $1.889 billion year-on-year.
For the full year, Mattel, Inc. (NASDAQ:MAT) lowered its full-year net sales growth expectations to a range of 1-3 percent from 2-3 percent previously.
Adjusted earnings per share were also pegged at a range of $1.54-$1.66 as compared with the $1.66-$1.72 prior.
4. Molina Healthcare, Inc. (NYSE:MOH)
Molina Healthcare ended two straight days of rally on Thursday, dropping 16.84 percent to close at $158.22 apiece as investor sentiment was dampened by its lower earnings outlook for the year.
In a statement, Molina Healthcare, Inc. (NYSE:MOH) lowered its adjusted EPS outlook by 22 percent to only $19 from the $24.5 guidance previously.
Total revenues were also expected to settle at $44 billion, or 8.37 percent higher than the $40.65 billion in 2024.
In the second quarter of the year, Molina Healthcare, Inc. (NYSE:MOH) saw net income decline by 15 percent to $255 million from $301 million in the same period last year, pulling net profit for the first half lower by 8 percent to $553 million from $602 million year-on-year.
Total revenues during the quarter increased by 15 percent to $11.4 billion from $9.88 billion, while revenues for the first semester grew by 13.6 percent to $22.57 billion from $19.8 billion year-on-year.
3. Dow Inc. (NYSE:DOW)
Dow Inc. snapped a three-day winning streak on Thursday, dropping 17.45 percent to close at $25.07 apiece as investor sentiment was dampened by a dismal earnings performance in the second quarter of the year.
In its earnings release, Dow Inc. (NYSE:DOW) swung to a net loss of $801 million from a $458 million net income in the same period last year. It also posted a six-month net loss of $1.09 billion, reversing a $996 million net income in the same period last year.
Net sales similarly declined by 7 percent to $10.1 billion in the second quarter, and by 5 percent to $20.5 billion from $21.68 billion year-on-year.
Further dampening sentiment was the company’s 50-percent drop in dividend per share, now to 35 cents from 70 cents previously.
“We are aligning the payout size to provide additional financial flexibility. Doing so ensures Dow’s ability to prioritize the highest return-generating opportunities, while maintaining a competitive dividend,” said Dow Inc. (NYSE:DOW) Chairman and CEO Jim Fitterling.
2. LKQ Corporation (NASDAQ:LKQ)
LKQ Corporation saw its share prices fall by 17.82 percent on Thursday to end at $31.73 apiece as investor sentiment was dampened by its lowering of growth outlook for the rest of the year amid tariff uncertainties.
In a statement following its earnings results, LKQ Corporation (NASDAQ:LKQ) said it now expects organic revenues to drop between 1.5 and 3.5 percent for the full year, as compared with a flat to 2 percent growth guidance previously.
Diluted EPS was also lowered to a range of $2.47 to $2.77 versus $2.91 to $3.21 previously.
In the second quarter of the year, LKQ Corporation (NASDAQ:LKQ) profit $192 million, higher by 3.8 percent than the $185 million in the same period last year.
Revenues also decreased by 1.9 percent to $3.64 billion from $3.7 billion year-on-year.
According to the company, its board of directors has approved a quarterly cash dividend of $0.30 per common share to shareholders as of August 14. The dividends are payable on August 28, 2025.
1. Iridium Communications Inc. (NASDAQ:IRDM)
Iridium Communications fell by 22 percent on Thursday to close at $25.26 apiece as investors soured on its disappointing earnings performance and lowered growth outlook.
In a statement, Iridium Communications Inc. (NASDAQ:IRDM) said net income in the second quarter of the year dropped by 32 percent to $21.97 million from $32.34 million in the same period last year. Net income for the first six months also finished flat at $52 million.
On the other hand, total revenues increased by 8 percent to $216.9 million from $201 million year-on-year.
Looking ahead, Iridium Communications Inc. (NASDAQ:IRDM) lowered its total service revenue growth expectations to a range of 3-5 percent, compared with the 5-7 percent growth guidance previously.
Despite the dismal earnings, Iridium Communications Inc. (NASDAQ:IRDM) declared a higher cash dividend to its investors for September, amounting to $0.15 per common share. This compares with $0.14 cash dividend in the second quarter of the year.
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