Wall Street’s main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data.
Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.
Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.
10. Coinbase Global, Inc. (NASDAQ:COIN)
Coinbase Global dropped its share prices by 7.2 percent on Thursday to close at $244.44 apiece as investor sentiment was dampened by news that its customer data was stolen, held for ransom, and could potentially cost the company up to $400 million.
Coinbase Global, Inc. (NASDAQ:COIN) said in a regulatory filing on Thursday that it received an email from an unknown party on Sunday claiming that it accessed the cryptocurrency exchange’s customer database by paying multiple contractors and employees working in support roles outside the US. The cryptocurrency exchange said the cybercriminals demanded as much as $20 million in ransom to sweep the incident under the rug.
Coinbase Global, Inc. (NASDAQ:COIN), however, said it refused to pay the demanded amount, but underscored that the issue could cost between $180 million to $400 million to fix underlying issues and reimburse affected customers.
9. Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group tanked by 7.57 percent on Thursday to finish at $123.90 apiece as investor sentiment was dampened by missed earnings forecasts in the first quarter of the year.
Alibaba Group Holding Limited (NYSE:BABA) saw net income attributable to shareholders jump by 279 percent in the first quarter of the year to 12.382 billion yuan from 3.270 billion yuan in the same period last year, while revenues increased by 7 percent to 236.4 billion yuan from 221.87 billion yuan year-on-year.
However, both earnings per share and revenue figures missed analysts’ estimates.
Meanwhile, CFO Toby Xu announced the distribution of annual and special dividends amounting to $4.6 billion.
The dividends will be paid out in two parts, totaling 25 cents per ordinary share or $2 per ADS. This comprised an annual regular cash dividend worth $0.13125 per share or $1.05 per ADS, as well as a one-time special cash dividend worth $0.11875 per ordinary share or US$0.95 per ADS.
The dividends will be applicable to shareholders as of record date June 12, 2025, both on the Hong Kong and US stock exchanges.
8. Upstart Holdings, Inc. (NASDAQ:UPST)
Upstart Holdings dropped its share prices by 7.66 percent on Thursday to finish at $47.39 apiece amid the lack of fresh developments from its recently organized AI Day.
Upstart Holdings, Inc. (NASDAQ:UPST) hosted its first-ever AI Day investor event in New York City, where investors hungry for fresh catalysts expected more concrete plans to buoy shares in the company.
Last week, Upstart Holdings, Inc. (NASDAQ:UPST) earned lower price targets from two investment firms, Needham and Piper Sandler, at $70 and $69, respectively.
Meanwhile, JP Morgan reaffirmed its Neutral rating and gave the stock a price target of $79.
During the first quarter of the year, Upstart Holdings, Inc.’s (NASDAQ:UPST) narrowed its net loss by 96 percent to $2.4 million from $64.6 million in the same period last year.
Revenues expanded by 67.7 percent to $213 million from $127 million year-on-year.
7. PagSeguro Digital Ltd. (NYSE:PAGS)
PagSeguro Digital, a Brazil-based financial services and digital payments company, saw its share prices tumble by 8.02 percent on Thursday to end at $8.95 apiece after missing analyst estimates for its first quarter earnings performance.
In its earnings release, PagSeguro Digital Ltd. (NYSE:PAGS) said it achieved an 8.9-percent increase in net income at R$525 million from R$482 million in the same period last year. Revenues grew by 12.6 percent to R$4.85 billion from R$4.3 billion year-on-year.
Earnings per share settled at R$1.72, falling short of the R$1.85 as expected by analysts.
Looking ahead, PagSeguro Digital Ltd. (NYSE:PAGS) said it is confident to deliver and achieve its 2025 guidance, saying that the bank is “a company recognized for its strong track record in delivering results and balancing growth with profitability despite economic cycles.”
6. Affirm Holdings, Inc. (NASDAQ:AFRM)
Affirm Holdings snapped a three-day winning streak on Thursday, losing 8.49 percent to close at $51.75 apiece, as investor sentiment was dampened by a weak outlook for the rest of the year.
According to Affirm Holdings, Inc. (NASDAQ:AFRM) CEO Max Levchin, its business from 0 percent APR installments generates lower revenues than its other products.
“We continued to lean into 0 percent APR monthly installments, which grew 44 percent year over year, and constituted 13 percent of total GMV, the highest level in the past two years,” Levchin said.
“While the revenue and RLTC (revenue less transaction costs) content in such transactions is marginally lower compared to interest-bearing loans, they attract higher credit quality consumers to Affirm, drive outsized point of sale conversion for merchants, and build our brand equity,” he added.
Looking ahead, Affirm Holdings, Inc. (NASDAQ:AFRM) expects full-year revenues to increase to between $3.163 billion and $3.193 billion, up from its earlier outlook of $3.13 billion to $3.19 billion previously.
5. Webull Corporation (NASDAQ:BULL)
Webull Corporation extended its losing streak for a fifth consecutive day on Thursday, dropping 9.06 percent to end at $12.29 apiece as investors repositioned portfolios ahead of the release of its earnings performance next week.
According to the company, it will announce the results of its performance for the first three months of the year after market close on Thursday, May 22.
In recent news, Webull Corporation (NASDAQ:BULL) partnered with financial services giant Visa to enable real-time transactions in the US.
Under the partnership, accessing and transferring funds to and from Webull accounts will now be made easier in less than a minute with Visa Direct, compared to traditional methods like Automated Clearing House (ACH) transfers, which take days.
Webull Corporation (NASDAQ:BULL) is a financial services company offering trading platform services for various assets such as stocks and ETFs, among others. It also offers wealth management and investor education services.
4. Reddit, Inc. (NYSE:RDDT)
Reddit Inc. snapped a five-day winning streak on Thursday, dropping by 9.36 percent to end at $113.59 apiece as investors booked profits following the consecutive days of price surge, which analysts said were just buoyed by “meme moves.”
In recent news, Reddit, Inc. (NYSE:RDDT) has been linked to its co-founder’s recent acquisition of a 10-percent stake in the Women’s Super League, Chelsea Football Club.
While the acquisition does not directly impact the trading performance of Reddit, Ohanian’s presence in other industries could support further visibility for Reddit, Inc. (NYSE:RDDT).
During the first quarter of the year, Reddit, Inc. (NYSE:RDDT) swung to a net income of $26.2 million from a $575.1 million net loss in the same period last year.
Revenues also jumped by 61 percent to $392.4 million from $243 million year-on-year.
For the second quarter of the year, Reddit, Inc. (NYSE:RDDT) is targeting to hit between $410 million and $430 million in revenues, with an adjusted EBITDA range of $110 million to $130 million.
3. UnitedHealth Group Inc. (NYSE:UNH)
UnitedHealth fell for the eighth straight day on Thursday, tumbling 10.93 percent to close at $274.35 apiece as investor sentiment was dampened by reports that it is being investigated over alleged fraudulent activities in its Medicare payouts.
On Thursday, the Wall Street Journal reported that the Department of Justice (DOJ) is investigating UnitedHealth Group Inc. (NYSE:UNH) over its Medicare billing practices.
According to the report, the investigation has been ongoing since the middle of 2024 to look into whether the company fraudulently inflated patient diagnoses to rake in higher payouts from Medicare.
Meanwhile, UnitedHealth Group Inc. (NYSE:UNH) called the report “deeply irresponsible, as even it admits that the ‘exact nature of the potential criminal allegations is unclear.’”
It said that it had not been formally notified of any criminal investigation but said that it “stands by the integrity of [its] Medicare Advantage program.”
2. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Dick’s Sporting Goods tumbled by 14.58 percent on Thursday—a third day—to close at $179.05 apiece following the release of its preliminary earnings results and news that it would acquire Foot Locker, Inc. (NYSE:FL) for $2.4 billion.
In a statement, DICK’S Sporting Goods, Inc. (NYSE:DKS) said it expects to report sales growth of 4.5 percent and earnings per diluted share of $3.24.
Meanwhile, the company announced that it had entered into a definitive merger agreement to acquire Foot Locker at a price of $24 apiece.
It also offered shareholders the option to convert their Foot Locker, Inc. (NYSE:FL) shares to 0.1168 of Dick’s common stock.
The transaction is subject to regulatory and shareholders’ approval, as well as other customary closing conditions. The companies expect to close the transaction in the second half of 2025.
1. Fiserv, Inc. (NYSE:FI)
Shares of Fiserv Inc. fell by 16.19 percent on Thursday to close at $159.13 apiece as investor sentiment was dented by announcements that its Clover point-of-sale platform is expected to remain flat.
According to Fiserv, Inc. (NYSE:FI) Chief Finance Officer Robert Hau, growth from its Clover platform is expected to be “generally similar” due to its existing clients converting to the Clover gateway platform last year, which is not repeatable.
“So we had a gateway that was non-Clover for clients that we converted over to the Clover Gateway… that doesn’t repeat this year,” he said.
Fiserv, Inc. (NYSE:FI) is a multinational company providing financial technology and services to clients such as solutions for banking, global commerce, merchant acquiring, billing and payments, and point-of-sale.
In the first quarter of the year, the company said attributable net income grew by 16 percent to $851 million from $735 million in the same period last year.
Revenues increased by 5.06 percent to $5.130 billion from $4.883 billion year-on-year.
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