Ten companies crashed hard at intraday trading on Thursday as investors soured amid company-specific developments, while digesting the new US-China trade deal.
Following a two-day talk in London, the US and China were said to have struck a new deal, albeit existing tariffs remained in place. While not at all bad news, investors remained cautious about whether the new framework would secure the green light of Presidents Donald Trump and Xi Jinping.
Meanwhile, let us explore the 10 worst-performing stocks on Thursday and detail the reasons behind their decline.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and over 5 million in trading volume.
10. D-Wave Quantum Inc. (NYSE:QBTS)
D-Wave Quantum dropped its share prices by 3.33 percent at intraday trading on Thursday, as investors continued to book profits following Nvidia Corp. CEO Jensen Huang’s optimistic comments about the quantum computing industry.
At a conference in Paris on Wednesday, Huang said that quantum computing was reaching an inflection point, sparking an intraday rally among quantum computing stocks before slight profit-taking pulled their share prices back.
According to Huang, the world is within reach of being able to use quantum computers to be applied in areas and solve interesting problems in the coming years.
In recent news, D-Wave Quantum Inc. (NYSE:QBTS) announced plans to raise as much as $400 million to fund general corporate purposes, including working capital, capital expenditures, and possible acquisitions and expansion plans.
This followed another $95.8 million previously through the issuance of 8.33 million warrants at a price of $11.50 apiece.
The warrants were assumed by D-Wave Quantum Inc. (NYSE:QBTS) in connection with its merger with DPCM Capital Inc., which was completed on August 5, 2022.
9. Alibaba Group Holding Limited (NYSE:BABA)
Alibaba dropped its share prices by 3.64 percent at intra-day trading on Thursday at $115.95 apiece, tracking an overall sluggish market sentiment, as investors traded cautiously despite a new trade deal between the US and China.
This came after reports that the trade talks focused only on rare earth minerals, with tariffs imposed on each other’s goods remaining in place.
Additionally, the new framework is still pending approval from Presidents Donald Trump and Xi Jinping.
The cautious sentiment spilled over to Chinese stocks, including Alibaba Group Holding Limited (NYSE:BABA), which was among the US-listed China-based firms feared to face potential delisting amid the two countries’ trade war.
In recent news, Alibaba Group Holding Limited (NYSE:BABA) reported a 279-percent jump in its net income attributable to shareholders in the first quarter of the year to 12.382 billion yuan from 3.270 billion yuan in the same period last year.
Revenues increased by 7 percent to 236.4 billion yuan from 221.87 billion yuan year-on-year.
8. The Gap, Inc. (NYSE:GAP)
The Gap Inc. saw its share prices drop by 4 percent at intraday trading on Thursday at $21.59 apiece as investors soured on the US-China trade deal that was said to have focused only on rare earth minerals.
On Thursday, the US and China progressed on their two-day trade negotiations, but existing tariffs on each other’s goods were said to have remained in place.
Just recently, The Gap, Inc. (NYSE:GAP) provided a cautious business outlook for the rest of the year.
In its earnings release, The Gap, Inc. (NYSE:GAP) said it expects to book between $250 million and $300 million of incremental costs if President Donald Trump’s tariff rates of 30 percent on China and 10 percent on other countries remain.
“The company currently has strategies to mitigate more than half of that amount. After considering these mitigation strategies, the company estimates a remaining net impact of about $100 million to $150 million to fiscal 2025 operating income, primarily weighted to the back half of the year,” it underscored.
Excluding the impact of tariffs, The Gap, Inc. (NYSE:GAP) said it was expecting to post a 1 to 2 percent growth in net sales for the full year 2025, with operating income between 8 and 10 percent. The second quarter, however, is expected to remain flat year-on-year.
7. Circle Internet Group (NYSE:CRCL)
Circle Internet pulled back by 7.28 percent at intraday trading on Thursday at $108.67 apiece as investors continued to take profits after rallying as high as 347 percent in just the past seven trading days.
The recent price surge reflected strong investor confidence, further supported by its successful raising of $1.1 billion in fresh funds through an upsized initial public offering.
On Wednesday, Circle Internet Group (NYSE:CRCL) announced that its underwriters fully exercised the option to purchase 5.1 million of its shares, bringing its total proceeds to $1.1 billion.
Circle Internet Group (NYSE:CRCL) joined Coinbase, MARA Holdings, and Riot Platforms in the US stock exchange’s few pure-play cryptocurrency companies.
“We’ve been one of the most licensed, regulated, compliant, transparent companies in the entire history of this industry, and that’s served us well,” said Circle Internet Group (NYSE:CRCL) CEO Jeremy Allaire in an interview with CNBC.
6. Nu Holdings Ltd. (NYSE:NU)
Nu Holdings declined by 5.4 percent at intraday trading on Thursday at $12.07 apiece as investor sentiment was dampened by uncertainties in Brazil’s new fiscal package.
The plan, which includes slapping higher taxes on financial firms, heavily weighed on investor sentiment, including Nu Holdings Ltd. (NYSE:NU).
While the bill remains under scrutiny by the Congress, the measure would require the financial sector to pay higher duties on their net profits if it passes into law.
According to the Brazilian government, the overall measure is expected to generate R$40 billion annually.
In the first quarter of the year, Nu Holdings Ltd. (NYSE:NU) grew its net income by 74 percent to $557.2 million from the $378.8 million in the same period last year. Revenues rose by 40 percent to $3.2 billion driven by a 62 percent expansion in the interest-earning portfolio.
“In Brazil, nearly 30 percent of adults consider Nu their primary bank, confirming significant market share gains and value delivery. With disciplined boldness, we’re capitalizing on vast growth opportunities by responsibly expanding, strategically reinvesting, and scaling our proven flywheel model,” said Nubank CEO David Velez.
“We are confident that by continuously enhancing our offerings and market position, Nubank will capitalize on the long runway of growth ahead of us and deliver enduring value to both customers and shareholders,” he added.
5. The Boeing Company (NYSE:BA)
Shares of Boeing dropped by 5.94 percent at intraday trading on Thursday at $201.28 apiece as investors sold off positions following a plane crash in India.
An Air India aircraft, using the 787-8 Dreamliner manufactured by The Boeing Company (NYSE:BA), crashed in Ahmedabad on Thursday, killing 240 people onboard. The aircraft was reportedly bound for London.
The crash raised safety concerns on The Boeing Company (NYSE:BA, especially with the 787-8 Dreamliner aircraft said to be the aviation industry’s “best-selling passenger widebody of all time,” that successfully carried more than 1 billion passengers since it was first delivered in 2011.
The Boeing Company (NYSE:BA) said that it was already in contact with Air India about the crash and stands ready to support them.
“Our thoughts are with the passengers, crew, first responders, and all affected,” it said.
4. Joby Aviation, Inc. (NYSE:JOBY)
Joby Aviation declined by 7.16 percent at intraday trading on Thursday at $8.94 apiece following Cantor Fitzgeral’s downgraded rating on its stock.
On Thursday, the investment firm lowered its outlook to “neutral” from “overweight” previously given the company’s recent share price rally and lack of near-term catalysts.
However, Cantor Fitzgerald said that Joby Aviation, Inc. (NYSE:JOBY) remains one of the best-positioned companies in the electric vertical takeoff and landing (eVTOL) industry, supported by its partnerships with Toyota Motors Corp., Delta Air Lines, and the US Department of Defense.
The stock, however, was already up by 60 percent over the past three months and 90 percent over the past year.
“We don’t see current levels as a good entry point for investors,” Cantor Fitzgerald said.
In recent news, Joby Aviation, Inc. (NYSE:JOBY) earned a boost from President Donald Trump’s new executive order aiming to unleash “American Drone Dominance,” which aims to ramp up the adoption of eVTOL technology.
3. Quantum Computing Inc. (NASDAQ:QUBT)
Quantum Computing fell by 8.17 percent at intraday trading on Thursday at $17.42 apiece as investors resorted to profit-taking following the previous day’s surge.
During the previous day’s trading, Quantum Computing Inc. (NASDAQ:QUBT) rallied following optimistic comments from Nvidia Corp. CEO Jensen Huang that the quantum computing industry is reaching an inflection point.
In his keynote speech at a conference in Paris, Huang said that the application of quantum computers in areas that can solve interesting problems is now within reach.
“This is a really exciting time,” he noted.
Earlier this year, Huang walked back his comment that the practical use of quantum computers is only 15 to 30 years away.
Last week, Ascendiant Capital Markets reaffirmed its “buy” recommendation on Quantum Computing Inc.’s (NASDAQ:QUBT) stock, while raising its price target to $22 from $14 previously.
2. Equinox Gold Corp. (NYSEAmerican:EQX)
Equinox Gold declined by 10 percent at intraday trading on Thursday at $6.26 apiece as investor sentiment was dampened by lower production outlook for the rest of the year.
In a statement, Equinox Gold Corp. (NYSEAmerican:EQX) now expects to produce between 555,000 and 625,000 ounces of gold, lower than the 635,000 to 750,000 as expected previously.
“Since achieving commercial production at Greenstone in Q4 2024, the ramp-up has been slower than planned. Mine productivity and equipment availability, particularly with the primary loading fleet, have fallen short of plan, impacting mining rates and delaying access to higher-grade ore zones. Further, year-to-date mined grades have been below expectations, in part due to higher-than-anticipated dilution,” said Equinox Gold Corp. (NYSEAmerican:EQX) President and CEO Greg Smith.
“On the processing side, while we are seeing improvements in throughput and recovery, year-to-date performance is also below plan. We are addressing the shortfalls and are revising … full-year production guidance,” he added.
Following the revision, the National Bank of Canada lowered its price target for the company to $12 from $14 previously.
1. GameStop Corp. (NYSE:GME)
GameStop fell by 24.55 percent at intraday trading on Thursday at $21.54 apiece following plans to raise $1.75 billion through a debt offering.
In a statement, GameStop Corp. (NYSE:GME) said it would offer no-interest convertible notes to qualified institutional buyers through 2032, with the option for the investors to convert them into its shares later on.
“Upon conversion, GameStop will pay or deliver, as the case may be, cash, shares of GameStop’s Class A common stock, par value $.001 per share, or a combination of cash and shares of Class A common stock, at its election,” it said.
GameStop Corp. (NYSE:GME) said it plans to use the proceeds from the offering for general corporate purposes, including potential acquisitions.
Last month, GameStop Corp. (NYSE:GME) announced the acquisition of worth $500 million of 4,710 Bitcoins as it looked to other industries to grow its business. The $500 million forms part of the company’s $1.3 billion Bitcoin purchase program, an amount it planned to raise from offering convertible senior notes.
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