Market Shockers: 10 Stocks Collapse by Double Digits

Ten stocks fell sharply on Wednesday, mirroring a decline on Wall Street, as investors turned cautious anew over renewed tensions between the US and China.

All Wall Street main indices finished in the red, led by Nasdaq, which fell by 0.93 percent, followed by the Dow Jones, down 0.71 percent, and the S&P 500, decreasing 0.53 percent.

Indices aside, we spotlight the 10 companies that were battered heavily during the session and break down the reasons behind their performance.

To come up with the list, we focused exclusively on mid-cap companies with $2 billion market capitalization and 5 million shares in trading volume.

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10. Netflix Inc. (NASDAQ:NFLX)

Movie streaming giant Netflix Inc. (NASDAQ:NFLX) snapped a three-day winning streak on Wednesday, dropping 10.07 percent to close at $1,116.37 after getting hit by a tax blow in Brazil in what would have been a quarter that exceeded company expectations.

In an updated report, Netflix Inc. (NASDAQ:NFLX) said net income in the third quarter of the year grew by 7.7 percent to $2.547 billion from $2.364 billion in the same period last year, while revenues jumped by 17.3 percent to $11.5 billion from $9.8 billion year-on-year, driven primarily by membership growth, pricing adjustments, and increased ad revenue.

However, operating margins ended at 28 percent, well below its earlier guidance of 31.5 percent, due to unforeseen $619 million tax payments to Brazilian tax authorities related to its non-income tax assessment.

Without such expense, Netflix Inc. (NASDAQ:NFLX) would have exceeded its operating margin expectations.

In the fourth quarter of the year, the company is targeting to grow its revenues by 17 percent, to be driven by membership growth, pricing, and ad revenues.

For the full-year 2025, revenues are expected to jump by 16 percent to $45.1 billion, with an operating margin of 29 percent.

9. CleanSpark, Inc. (NASDAQ:CLSK)

CleanSpark dropped for a second day on Wednesday, shedding 10.18 percent to close at $16.86 apiece as investors trimmed exposure from renewed geopolitical tensions between the US and China.

CleanSpark, Inc. (NASDAQ:CLSK) declined alongside its counterparts, namely Cipher Mining, BitFarms, and Hut 8 Corp., mirroring Bitcoin’s drop to the $107,000 territory.

Overall market sentiment weakened after President Donald Trump’s announcement that he would impose export curbs to China made with US software.

According to a report by Reuters, the restrictions would impact a broad range of goods including laptops and jet engines, among others.

The retaliation followed Beijing’s newly imposed policy to curb exports of rare earth products, with foreign entities now required to obtain export licenses.

Tensions aside, CleanSpark, Inc. (NASDAQ:CLSK) earlier this week announced progress on its diversification program, with the appointment of Jeffrey Thomas as senior vice president for AI Data Centers.

Thomas brings more than four decades of global experience in emerging technologies and data center infrastructure development, and would support CleanSpark, Inc.’s (NASDAQ:CLSK) goal of expanding into AI servicing.