Why Dollar Tree, Inc. (DLTR) Crashed On Wednesday

We recently published a list of Investors Are Dumping These 10 Stocks. In this article, we are going to take a look at where Dollar Tree, Inc. (NASDAQ:DLTR) stands against other worst-performing stocks on Wednesday.

Dollar Tree saw its share prices decline by 8.37 percent on Wednesday to end at $88.62 apiece as investors took profits following yesterday’s gains, likely influenced by comments from its competitor’s chief executive that they have seen an increasing number of middle- to high-income class customers during the past quarter.

Despite reporting impressive earnings performance on Wednesday, the drop in share prices of Dollar Tree, Inc. (NASDAQ:DLTR) suggested that investors have already priced in the news.

Why Dollar Tree, Inc. (DLTR) Crashed On Wednesday

A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.

A day after Dollar General’s comments, Dollar Tree, Inc. (NASDAQ:DLTR) said that it has likewise recorded higher-income customers shopping at its stores.

In the first quarter of the year, Dollar Tree, Inc. (NASDAQ:DLTR) grew its net income by 14.4 percent to $343.4 million from $300.1 million in the same period last year.

Revenues also increased by 10 percent to $4.6 billion from $4.17 billion year-on-year.

Overall, DLTR ranks 2nd on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of DLTR, 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 DLTR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.