Ten companies posted double-digit declines last week amid a series of dismal earnings performance and outlook guidance that weighed down on investor sentiment, bucking an overall strength of Wall Street’s main indices on a week’s basis.
Over the past five trading days, the Dow Jones registered growth of 0.5 percent, the S&P 500 increased by 1.47 percent, and the tech-heavy Nasdaq rallied by 2.57 percent.
In this article, we have listed the 10 names that fell the hardest last week and detailed the reasons behind their declines.
To come up with the list, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
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10. Astera Labs Inc. (NASDAQ:ALAB)
Astera Labs suffered a 13-percent drop week-on-week, ending Friday at $87.85 apiece versus the $101.29 registered on February 7, as investors sold off positions following the release of mixed earnings performance in 2024.
On Monday, February 10, ALAB announced that its net income for the fourth quarter of 2024 jumped by 72 percent to $24.7 million from $14.3 million in the same period a year earlier, as revenues expanded 179 percent to $141 million from the $50 million in the same comparable period.
However, the fourth quarter’s figures fell short of pulling the company out of losses, having widened its net losses by a whopping 217 percent to $83.4 million in full-year 2024 from the $26.26 million registered in 2023.
But this year is expected to be “a breakout year.” According to ALAB CEO Jitendra Mohan, the company is set to enter a new phase of growth driven by revenues from all of its products, including its flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.
9. Twilio Inc. (NYSE:TWLO)
Twilio Inc. saw its share prices decline by 14 percent week-on-week, finishing Friday at $125.17 as compared with the $145.65 registered on February 7, as investors sold off positions following the company’s weak outlook for the current quarter, shunning last year’s better performance.
At intra-week trading, TWLO’s share prices hovered around the $140-level, before dropping heavily on Friday following announcements that it expects to see adjusted earnings per share of 88 to 93 cents for the first quarter on revenues of $1.13 billion to $1.14 billion. The company’s outlook was short of the 98 cents adjusted EPS as projected by analysts, while the revenue guidance fell just shy of the $1.14 billion expected.
During the last quarter, TWLO narrowed its net losses by 96 percent to $12.47 million versus the $365 million registered in the same period last year, despite 11 percent higher revenues of $1.194 billion versus $1.075 billion year-on-year.
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