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.
8. Intuitive Machines Inc. (NASDAQ:LUNR)
Intuitive Machines extended losses for a second day on Wednesday, shedding 10.49 percent to close at $11.35 apiece, in line with the broader market as investors flocked to safety amid renewed tensions between the US and China.
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.
Additionally, the drop was dampened by the lack of fresh catalysts to spark buying appetite.
In other news, Intuitive Machines Inc. (NASDAQ:LUNR) received a Capability Maturity Model Integration (CMMI) Maturity Level 3, which signifies that it meets the National Aeronautics and Space Administration’s (NASA) standards for Class A human spaceflight, together with well-defined and consistently applied engineering processes.
7. Cipher Mining Inc. (NASDAQ:CIFR)
Cipher Mining dropped it share prices by 10.87 percent on Wednesday to close at $16.11 apiece as investor sentiment was primarily dragged by an overall market pessimism due to renewed trade tensions between the US and China.
Cipher Mining Inc. (NASDAQ:CIFR) fell in tandem with its Bitcoin mining peers, namely CleanSpark, BitFarms, and Hut 8 Corp., after the cryptocurrency dropped to the $107,000 territory during the day.
The overall market sentiment was dampened by a report by Reuters that President Donald Trump was keen on imposing retaliatory export curbs to China of products made with US software, impacting a broad range of goods including laptops and jet engines, among others.
Trump’s decision followed Beijing’s newly imposed policy earlier this month that sought to curb exports of rare earth products, with foreign entities now required to obtain export licenses.
In other news, Cipher Mining Inc. (NASDAQ:CIFR) announced that it would release the results of its third quarter earnings performance before market open on November 3, 2025.
Earlier this month, Cipher Mining Inc. (NASDAQ:CIFR) said that it was able to produce 251 Bitcoins for the whole month of September, marking an increase of 10 units from 241 in August, thanks to a higher self-operating hash rate of 23.6 EH/s versus 23 EH/s.
6. Bitfarms Ltd. (NASDAQ:BITF)
Bitfarms extended its losing streak to a 5th straight session on Wednesday, shedding another 12.25 percent to finish at $3.94 apiece after successfully raising $588 million in fresh funds from the issuance of convertible senior notes.
In a statement on Tuesday, Bitfarms Ltd. (NASDAQ:BITF) said that the overall issuance, which covered $500 million in aggregate principal amount alongside $88 million of overallotment option to underwriters, was fully subscribed.
The notes are set to mature in 2031 and will carry an interest rate of 1.375 percent, payable semi-annually in arrears on every January 15 and July 15 of each year. The first payment is scheduled for July 2026.
Prior to maturity, noteholders would have the option to convert their holdings into cash or shares, or a combination of both.
In case of stock conversion, Bitfarms Ltd. (NASDAQ:BITF) said that every $1,000 notes will be converted to 145.6876 common shares, or an initial conversion price of $6.86 apiece, or a 30 percent premium over the $5.28 closing price last October 16.
Bitfarms Ltd. (NASDAQ:BITF) said proceeds from the offer will be used to support the development of its high-performance computing and AI infrastructure developments in North America.
5. QuantumScape Corp. (NYSE:QS)
Shares of QuantumScape fell by 12.50 percent on Wednesday to end at $13.58 apiece as investors sold off positions amid an overall market pessimism, shunning the company’s improved earnings performance in the third quarter of the year.
In an updated report, QuantumScape Corp. (NYSE:QS) said that it narrowed its net loss by 11.5 percent to $105.8 million from $119.6 million in the same period last year, while loss from operations dwindled by 11.6 percent to $114.99 million from $130.16 million year-on-year.
During the quarter, the company also successfully shipped its most advanced QS cells to date, the Cobra-based QSE-5 B1, following the launch of the product through the Volkswagen Group’s Ducati V21L motorcycle.
In line with its expansion program, QuantumScape Corp. (NYSE:QS) is installing a highly automated cell production pilot line, the Eagle Line, at its headquarters in San Jose, California.
“We are working together with our partners to bring our groundbreaking solid-state lithium-metal battery technology to market as quickly as possible. This announcement is another critical step toward achieving our goal of revolutionizing energy storage,” QuantumScape Corp. (NYSE:QS) COO Luca Fasoli said.
4. Galaxy Digital (NASDAQ:GLXY)
Galaxy Digital fell sharply on Wednesday, losing 12.88 percent to close at $37.34 after hitting a new all-time during the previous trading day, thanks to nearly 2,000-percent improvement in its third quarter earnings performance.
In an updated report, Galaxy Digital (NASDAQ:GLXY) swung to a net income of $505 million, a whopping 1,615-percent improvement from a $33.3 million net loss in the same period last year. Revenues soared by 231 percent to $28.4 billion from $8.57 billion year-on-year.
According to the company, the strong performance was bolstered by record volumes in its digital asset trading operations.
For the high-performance computing (HPC) business, Galaxy Digital (NASDAQ:GLXY) said it remains on track to deliver the first phase of its critical IT load capacity commitment to CoreWeave in the first half of 2026, covering a total of 133 MW.
Additionally, CoreWeave exercised its final option to access an additional 133 MW of critical IT load from the Helios data center, bringing its total commitment to the full 800 MW of the campus’s maximum power capacity.
3. Oklo Inc. (NYSE:OKLO)
Oklo extended its losing streak to a third straight day on Wednesday, shedding 13.86 percent to close at $120.12 apiece following criticisms from the Financial Times which profiled the company as a $20 billion nuclear startup without any revenues.
The piece came after a whopping 500 percent jump in its share prices over the past year, buoyed by the artificial intelligence frenzy that was believed to propel the demand for energy over the next few years.
Experts, however, feared that the stock has become overvalued, riding on Oklo Inc.’s (NYSE:OKLO) links to Energy Secretary Chris Wright who was a former board member of the company.
This year alone, Oklo Inc. (NYSE:OKLO) secured multiple projects from the Department of Energy (DOE) in line with the US government’s development of energy resources in the country.
Earlier this month, it was chosen as one of the four firms for the department’s Advanced Nuclear Fuel Line Pilot Projects, under which it will build and operate three fuel fabrication facilities to support the deployment of advanced reactors.
In August 2025, Oklo Inc. (NYSE:OKLO) and its subsidiary Atomic Alchemy, also bagged three of 11 projects under the DOE’s Reactor Pilot Program.
2. D-Wave Quantum Inc. (NYSE:QBTS)
D-Wave Quantum fell for a 5th straight session on Wednesday, dropping 15.22 percent to close at $27.29 apiece as investors unloaded positions amid an overall market pessimism, while digesting the redemption of its outstanding warrants.
This followed announcements earlier this week that it would officially redeem its 5 million outstanding warrants, which are exercisable for conversion into shares, cash, or both, until November 19, 2025.
“If all of the outstanding warrants are exercised, approximately 7.2 million shares of common stock will be issued that will result in less than 2.1 percent dilution to existing shareholders,” D-Wave Quantum Inc. (NYSE:QBTS) said.
Meanwhile, any unexercised warrant will be redeemed for $0.01 apiece upon expiration, in accordance with the terms of the company’s warrant agreement.
In other news, D-Wave Quantum Inc. (NYSE:QBTS) said it recently partnered with Swiss Quantum Technology SA for the deployment of a D-Wave Advantage2 annealing quantum computer in Europe.
The agreement represents a 10 million euro commitment from Swiss Quantum, with an option to purchase the system.
1. Hut 8 Corp. (NASDAQ:HUT)
Hut 8 Corp. fell for a second day on Wednesday, losing 17.22 percent to close at $38.84 apiece as investors took path from an analyst’s sell recommendation for its stock.
In the latest episode of Mad Money, host and former hedge fund manager Jim Cramer suggested a caller to “ring the register,” or start booking profits.
“It is making money … but it’s still a parabolic move, and you know that I feel that parabolic moves are very, very suspect. I think you should ring the register on some,” Cramer said.
Meanwhile, Piper Sandler shared a different view, maintaining an “overweight” rating for Hut 8 Corp. (NASDAQ:HUT) with a higher price target of $74, or a 124 percent increase from the $33 previously.
For its part, Piper Sandler said that the revision reflected Hut 8 Corp.’s (NASDAQ:HUT) ongoing development of 1.5 GW of power across four sites in the US.
It added that the share price has yet to reflect the company’s exclusive rights to build another 1.3 GW, suggesting further upside potential.
While we acknowledge the potential of HUT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HUT and that has 100x upside potential, check out our report about this cheapest AI stock.
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