Ten stocks kicked off the first trading day of June with losses, as President Donald Trump’s new round of tariffs dented investor sentiment anew.
The stocks defied a broader market optimism, with all Wall Street’s major indices finishing in the green. The tech-heavy Nasdaq grew 0.67 percent, followed by the S&P 500 with 0.41 percent, and the Dow Jones by 0.08 percent.
In this article, we name the 10 worst performers on Monday and explore the reasons behind their drop.
To come up with the list, we only focused on the companies with a $2 billion market capitalization and 5 million daily trading volume.
10. Macy’s, Inc. (NYSE:M)
Macy’s extended its losing streak to a fourth consecutive day on Monday, shedding another 4.79 percent to finish at $11.32 apiece as investors continued to dispose of shares following news that it would raise its prices across its stores to offset higher tariffs.
Although Macy’s, Inc. (NYSE:M) followed suit of other retailers that have previously guided higher prices, the possibility of lower demand for its products dampened investor sentiment.
“There are going to be items that are the same price as they were a year ago. There [are] going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn’t merit the quality or the perceived value by the consumer,” Macy’s, Inc. (NYSE:M) CEO Tony Spring said in an interview with CNBC following the company’s first quarter earnings results.
He added that the company is actively reducing its exposure to Chinese imports through renegotiating supplier contracts, as well as cancelling and delaying orders that do not meet their value criteria.
9. UWM Holdings Corp. (NYSE:UWMC)
UWM Holdings dropped its share prices by 4.88 percent on Monday to finish at $4.09 apiece, as investors repositioned portfolios to mitigate risks amid renewed global trade fears.
For the past four trading days, shares of UWM Holdings Corp. (NYSE:UWMC) saw a rally in its shares following its win against Okavage Group over its “All-In” initiative that prohibits mortgage brokers from working with competitors such as Rocket Mortgage and Fairway Independent Mortgage Corp.
The new Court decision officially ended the two firms’ four-year legal battle.
In the first quarter of the year, UWM Holdings Corp. (NYSE:UWMC) swung to a net loss of $247 million from a net income of $180 million in the same period last year, and $40 million in the fourth quarter of 2024.
Revenues, however, inched up by 4.79 percent to $613 million from $585 million year-on-year.
8. Bath & Body Works, Inc. (NYSE:BBWI)
Bath & Body Works dropped its share prices by 4.94 percent on Monday to end at $26.73 apiece as investor sentiment was dampened by an investment firm’s lower price target for the company.
On Friday, Telsey Advisory Group reduced its price target for Bath & Body Works, Inc. (NYSE:BBWI) to $38 from $43 previously, but maintained it “buy” recommendation on its stock.
According to Telsey, the lower price target was based on the company’s continued tariff pressure amid its exposure to the ongoing global trade war.
In the first quarter of the year, Bath & Body Works, Inc. (NYSE:BBWI) grew its net income by 21 percent to $105 million from $87 million in the same period last year. Net sales inched up by 3 percent to $1.4 billion from $1.38 billion year-on-year.
For the full-year period, Bath & Body Works, Inc. (NYSE:BBWI) maintained its net sales guidance of growing from 1 to 3 percent.
7. MP Materials Corp. (NYSE:MP)
MP Materials snapped a three-day winning streak on Monday, shedding 5.92 percent to end at $20.50 apiece as investor sentiment appears to have been dented anew by President Donald Trump’s imposition of a new round of tariffs.
Over the weekend, Trump ordered the imposition of a 50-percent duty on steel and aluminum imports, hours after accusing China of failing to stay true to their promise of mutually reducing levies and trade restrictions for critical minerals.
While the tariffs do not directly impact MP Materials Corp. (NYSE:MP), the escalating tensions between the two countries have again dampened negotiation hopes, especially at a time when China was looking into relaxing restrictions on rare earth minerals.
It can be learned that China was one of MP Materials Corp.’s (NYSE:MP) largest revenue sources, as it heavily relied on its Chinese partners to refine rare earth elements for years.
Last month, MP Materials Corp. (NYSE:MP), the US’s only rare earth minerals miner, stopped shipping mines to China for processing after the Chinese government slapped a 125-percent tariff on US imports.
6. DraftKings Inc. (NASDAQ:DKNG)
DraftKings saw its share prices decline by 5.99 percent on Monday to end at $33.73 apiece following news that Illinois is set to raise its taxes on legal sports wagers to boost its revenues.
Under the state budget set to be approved by Illinois Governor JB Pritzker, it would slap a 25-cent tax on the first 20 million wagers a company takes, and 50 cents for each bet past the threshold. The state was looking to raise more than $36 million in revenues yearly.
According to analysts, Illinois’ new state law would cost DraftKings Inc. (NASDAQ:DKNG) some $68 million in additional taxes.
In other news, DraftKings Inc. (NASDAQ:DKNG) is facing a lawsuit filed by a bettor from Iowa over its refusal to pay him worth $14.2 million in purported winnings.
Plaintiff Nicholas Bavas said he studied weather reports to determine that rain would likely shorten the 2024 AT&T Pebble Beach Pro-Am tournament.
As the third round ended and bad weather threatened to cancel the tournament, Bavas placed five bets on DraftKings Inc. (NASDAQ:DKNG), based on how the players were ranked at that point. He picked Wyndham Clark to win the tournament, who was later named the champion.
5. C3.ai, Inc. (NYSE:AI)
C3 AI dropped its share prices by 6.09 percent on Monday to end at $24.97 apiece as investor confidence was rattled by a series of sell positions triggered by four company executives.
In a regulatory filing, C3.ai, Inc. (NYSE:AI) said that its chief finance officer Lath Hitesh, two directors, and a vice president, sold a notable portion of their stakes in the company on May 29 and June 2.
Hitesh, for his part, disposed of 4,368 shares on May 29 at a price of $26.32 and $30, bringing his direct ownership in the company to just 250 shares.
Investors took the sell-offs negatively, especially given the lack of specific reason for the transaction.
In the fourth quarter of fiscal year 2025, C3.ai, Inc. (NYSE:AI) widened its net loss by 9 percent to $79.7 million from $72.9 million registered in the same period last year. Revenues increased by 25 percent to $108.7 million from $86.59 million.
4. UiPath Inc. (NYSE:PATH)
UiPath saw its share prices drop by 6.16 percent on Monday to end at $12.49 each as investor sentiment was dampened by its chief executive officer’s unloading of stake in the company.
In a regulatory filing on Monday, UiPath Inc. (NYSE:PATH) Chairman and Chief Executive Officer Dines Daniel sold 45,000 shares of the company at a price of $13.3063 for more than $598,000.
Following the transaction, Daniel’s indirect ownership in UiPath Inc. (NYSE:PATH) remains at 6.4 million through Ice Vulcan Holding Ltd., where he holds sole voting and investment power, as well as 24.9 million direct shares and additional 240,000 shares owned by his spouse.
According to UiPath Inc. (NYSE:PATH), the transactions were conducted under a pre-established trading plan.
In the first quarter of fiscal year 2025, UiPath Inc. (NYSE:PATH) narrowed its net loss by 21.6 percent to $22.5 million from $28.7 million in the same period last year.
Revenues increased by 6 percent to $356.6 million from $335 million year-on-year.
3. Peloton Interactive, Inc. (NASDAQ:PTON)
Peloton extended its losing streak to a fourth consecutive day on Monday, dropping 7.04 percent to finish at $6.6 apiece amid the lack of fresh catalyst to spark buying appetite, while investors continued to digest an investment firm’s lower rating for the company.
Last week, Citi lowered its price target for Peloton Interactive, Inc. (NASDAQ:PTON) to $8.5 from $10 previously, while maintaining a “neutral” stand on its stock.
The adjustment followed Peloton Interactive, Inc.’s (NASDAQ:PTON) mixed third-quarter results for fiscal year 2025.
During the period, the company narrowed its net loss by 71.5 percent to $47.7 million from $167.3 million in the same period last year.
Revenues, on the other hand, dropped by 13 percent to $624 million from $717.7 million year-on-year.
2. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Corcept Therapeutics dropped for a third consecutive day on Monday, shedding 7.58 percent to end at $71.68 apiece as investors appeared to have taken early profits from its intra-day surge.
At intra-day trading, Corcept Therapeutics Incorporated (NASDAQ:CORT) rallied to as high as $86.02 following news that its pivotal Phase 3 ROSELLA trial for the treatment of ovarian cancer achieved its primary endpoint of improved progression-free survival.
Investors booked early profits to pull the company’s share price down toward the end of the session.
Corcept Therapeutics Incorporated (NASDAQ:CORT) said that patients who received relacorilant combined with nab-paclitaxel chemotherapy, experienced a 30 percent reduction in risk of disease progression, compared with patients who received nab-paclitaxel monotherapy.
An interim analysis of overall survival (OS), showed that the addition of relacorilant reduced the risk of death by 31 percent, substantially lengthening patients’ lives.
1. Pony AI Inc. (NASDAQ:PONY)
Pony AI fell by 9.4 percent on Monday to end at $17.45 apiece as investors sold off positions to mitigate risks from the escalating trade tensions anew between the US and China.
Investor sentiment was particularly dampened by renewed fears of Chinese firms’ possible delisting from the US stock exchanges given the ongoing trade tensions.
Traders also appeared to have shunned Pony AI Inc.’s (NASDAQ:PONY) recent partnership with Shenzhen Xihu Corp. Ltd. for the deployment of more than 1,000 units of Pony AI’s seventh-generation robotaxis in Shenzhen over the next few years.
Xihu Group will leverage its strength on fleet and asset operations, safety and service guarantees, and benefit economically from the fleet and asset operations while, Pony AI Inc. (NASDAQ:PONY) will focus on AI technology innovations and scalable Robotaxi dispatch and service
Pony AI Inc. (NASDAQ:PONY) is the first company authorized to operate paid fully-driverless robotaxis within Shenzhen’s city centers.
While we acknowledge the potential of PONY, 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 PONY and that has 100x upside potential, check out our report about this cheapest AI stock.
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