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Pulse of The Market: Tuesday’s 10 Worst Performers

Wall Street finished Tuesday’s trading in a lackluster fashion, with all major indices ending in the green territory, but only eking out small gains.

The tech-heavy Nasdaq rallied the most, up by 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

The muted trading spilled over into individual stocks, with 10 in particular posting significant losses. In this article, let’s explore the top 10 companies that performed poorly on Tuesday.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

Source:Pexels

10. Uranium Energy Corp. (NYSEAMERICAN:UEC)

Uranium Energy dropped its share prices by 3.80 percent on Tuesday to close at $5.32 apiece as investors sold off positions to park funds amid the lack of fresh catalysts to buoy investing appetite.

Additionally, investor caution continues to linger for UEC amid the ongoing trade war between the United States and Canada.

As one of the largest uranium producers with operations in both countries, UEC stands to be hurt by higher import prices and possibly lower demand for uranium products.

Canada is currently the US’ largest uranium producer, delivering 27 percent of its total supply, followed by Australia and Kazakhstan with 22 percent of deliveries each, according to the US Energy Information Administration.

Late last month, a Canadian uranium miner and producer signaled that prices for US customers could rise by 10 percent if Trump’s tariff threats were to be implemented.

9. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)

Recursion Pharmaceuticals slashed its share prices by 3.83 percent on Tuesday to finish at $6.53 each amid the lackluster performance in the broader market that spilled over into its shares.

In recent news, RXRX welcomed the addition of Namandje Bumpus and Elaine Sun to the company’s board of directors.

Prior to her addition to the Board, Bumpus served as the Principal Deputy Commissioner for the Food and Drug Administration until December 31, 2024. She also has a distinguished background in scientific leadership roles, including her tenure as an endowed professor at Johns Hopkins University School of Medicine.

Meanwhile, Sun brings over 30 years of expertise in the life sciences and financial sectors. She currently serves as chief operating officer and chief financial officer at Mammoth Biosciences and holds senior positions at Halozyme Therapeutics and SutroVax.

8. DraftKings Inc. (NASDAQ:DKNG)

DraftKings snapped a two-day winning streak on Tuesday, shedding 3.87 percent to close at $38.95 apiece amid a lackluster overall market performance spilling over into the company.

DKNG has taken a proactive stance in enhancing its product offerings and services while expanding its market reach through strategic acquisitions and partnerships.

It also posted a more bullish outlook for its business, with revenue guidance adjusted higher to between $6.3 billion and $6.6 billion, from the $6.2 billion low-end targeted previously.

In the fourth quarter of the year, DKNG widened its net loss by 200 percent to $134 million from $44.6 million registered in the same period last year, as revenues dropped by 13 percent to $1.39 billion from $1.23 billion.

Despite the decline, net losses in full-year 2024 narrowed by 36.8 percent to $507 million from $802 million in 2023, as revenues grew 30 percent to $4.77 billion from $3.66 billion year-on-year.

7. Merck & Co. Inc. (NYSE:MRK)

Merk & Co. fell for a third consecutive day on Tuesday, losing 4.81 percent to close at $87.87 each, shunning an analyst recommendation to buy shares in the company.

In its market note, investment firm Citi maintained a Buy rating on MRK and gave the company a $115 price target, representing a 31-percent upside from its latest stock price.

Citi said its recommendation was based on MRK’s new licensing agreement with Jiangsu Hengrui Pharmaceuticals which grants MRK the exclusive rights to develop and commercialize HRS-5346, a phase 2 oral small molecule Lp(a) inhibitor, which aims to treat cardiovascular diseases.

Citi underscored the potential market for the treatment of elevated Lp(a), a condition that affects one out of five adults worldwide. It also said that the exclusive license agreement would allow MRK to diversify its portfolio.

6. United Parcel Services Inc. (NYSE:UPS)

United Parcel declined by 5.05 percent on Tuesday to end at $109.95 after Bank of America downgraded its price target for the company.

In its market note, Bank of America cut its price target for UPS by 3 percent to $129 from $133 previously, still a 17-percent upside from the company’s last closing price. However, it maintained its Buy rating on its shares.

Additionally, the investment firm reduced its earnings per share target for the first quarter of the year, now to $1.31 from $1.55 previously on the back of weak volumes and tariff uncertainties.

Further aggravating the sentiment was its peers’ dismal earnings performance and missed estimates in the fourth quarter of the year.

Last week, UPS counterpart FedEx posted an EPS of $4.51, lower than the $4.56 targeted by analysts. Still, its revenues ended at $22.2 billion, topping the $21.9 billion that analysts had called for.

5. KB Home (NYSE:KBH)

KB Home dropped its share prices by 5.21 percent on Tuesday to close at $58.57 apiece as investor sentiment was dampened by disappointing earnings performance in the first quarter ending February 2025.

In a statement, KBH said net income for the quarter dropped by 21.5 percent to $109 million from $138 million in the same period a year earlier, as revenues dipped by 5 percent to $1.391 billion from $1.467 billion.

Further adding to the already pessimistic sentiment was the company’s bearish outlook for the full year.

“While our sales trends have improved, we are reducing our revenue guidance for fiscal 2025 primarily to reflect the lower level of net orders we generated in the first quarter. I am confident that our experienced team will effectively navigate the variability in market conditions and execute our objectives for this year while continuing to deliver high levels of customer satisfaction,” said KBH Chairman and CEO Jeffrey Mezger.

For the full year, KBH expects revenues to settle somewhere between $6.6 billion and $7 billion.

4. VNET Group Inc. (NASDAQ:VNET)

VNET dropped its share prices by 5.67 percent on Tuesday to end at $8.48 apiece, in line with the overall muted sentiment, shunning news of better ratings from Moody’s.

On Monday, VNET earned an upgrade in VNET’s corporate family rating to B2 from B3 previously, and was given a “stable” outlook from “positive.”

Moody’s Senior Analyst Shawn Xiong said that the B2 rating was based on VNET’s strong position in China’s IDC market, its strategically located data centers with significantly expanded wholesale IDC capacity, a steady revenue growth record, diversified customer base, and established partnerships with leading cloud service providers and internet giants.

According to Xiong, VNET is expected to post solid revenues and earnings growth over the next 12 to 18 months, supported by operational synergies from strategic shareholder Shandong Hi-Speed Holdings.

Apart from Moody’s, VNET also earned better ratings from Bank of America, with a revised price target of $17.30, up from $14.50 previously. It also maintained a “buy” rating on the company.

The more optimistic outlook was based on the company’s much higher guidance on capacity delivery targets, now between 400 to 450MW as compared with the 153MW actual delivery in 2024.

3. Oklo Inc. (NYSE:OKLO)

Oklo saw its share prices decline by 6.41 percent on Tuesday to end at $28.93 apiece as investor sentiment was dampened by its disappointing earnings performance last year.

In its latest earnings results, OKLO said net loss widened by 129 percent to $73.6 million last year from $32.17 million in 2023, amid a 183-percent jump in operating losses to $52.8 million from $18.6 million year-on-year.

Despite the performance, OKLO said it was optimistic about its business outlook for the year.

“We’ve already made big strides in 2025: evolving our powerhouse offering to scale up to 75 MW, partnering with RPower on a gas-to-nuclear strategy, and expanding into radioisotope production with our strategic acquisition of Atomic Alchemy. These moves unlock new revenue opportunities and open additional markets for Oklo,” OKLO founder and CEO Jacob DeWitte said.

“As the only company with both a site use permit and secured fuel for our first deployment, Oklo remains on track to deliver commercial power by the end of 2027, backed by a strong and growing customer pipeline,” he added.

2. Nebius Group NV (NASDAQ:NBIS)

Nebius shares tumbled by 6.92 percent on Tuesday to finish at $27.17 apiece as investors sold off positions in line with the muted trading in the broader market and the lack of fresh catalysts to spark buying appetite.

In recent news, NBIS announced its role as an early adopter cloud provider of the NVIDIA Blackwell Ultra platform offering NVIDIA GB300 NVL72-powered instances by the end of 2025. The instances were said to be accelerated by 72 NVIDIA Blackwell Ultra GPUs.

NBIS said it plans to make NVIDIA Blackwell GPU capacity generally available to its US data centers by the second quarter of the year, with its New Jersey data center expected to be exclusive to the platform’s GPUs. Meanwhile, its facility in Kansas will deploy NVIDIA HGX B2000.

Meanwhile, NBIS was also named an ecosystem partner for the NVIDIA Dynamo Inference Engine, an open-source framework for the deployment of generative AI that increases DeepSeek-R1 throughput by 30x on NVIDIA Blackwell.

1. Core Scientific Inc. (NASDAQ:CORZ)

Core Scientific dropped by 6.98 percent on Tuesday to finish at $8.66 apiece, in line with the broader lackluster market, as investors sold off positions while waiting for fresh catalysts to boost investing appetite.

In recent news, CORZ announced the expansion of its existing footprint in Dalton, Georgia with an additional 170 acres of land set for development.

The company is looking to build an AI data center called Dalton 4 in the area, close to its existing facilities, which it expects to open by July 2026.

According to reports, another facility is expected to be built in the future.

At present, CORZ boasts a 195MW footprint, with one of its data centers housing Nvidia Corp.’s DGX hardware.

While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CORZ but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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