We recently published a list of Why These Energy Stocks are Losing This Week. In this article, we are going to take a look at where Prairie Operating Co. (NASDAQ:PROP) stands against other energy stocks that are losing this week.
2024 was a tough year for the global energy industry, the result of a rapidly evolving regulatory and geopolitical landscape. The broader energy sector ended last year with an uptick of just 5.72%, significantly lagging behind gains of 25% by the wider market.
READ ALSO: 12 Best Oil Refinery Stocks To Invest In According to Analysts and 11 Best Natural Gas Stocks To Buy Now
The oil and gas industry, a significant segment of the overall energy sector and a major contributor to the global GDP, is going through a tough period as it battles declining prices, a shifting global political landscape, and decreasing demand due to the ongoing energy transition towards renewables. The US Energy Information Administration stated last month that it expects Brent crude oil prices to fall 8% to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026, as supply outpaces demand.
The ongoing AI revolution and the accompanying data center boom, which has been widely expected to drive global energy demand, was also shaken up last month after the Chinese start-up DeepSeek revealed its energy and capital-efficient AI model. This cast serious doubt on a projected surge in US electricity demand, causing a wide number of energy stocks to record some of the biggest one-day drops in recent history.
Methodology
To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between February 14 to February 24, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Prairie Operating Co. (NASDAQ:PROP)
Share Price Decline Between Feb. 14 – Feb. 24: 8.46%
Prairie Operating Co. (NASDAQ:PROP) is an independent energy company engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States.
Shares of Prairie Operating Co. (NASDAQ:PROP) declined earlier this month after it announced a $602.75 million acquisition and a stock offering that would provide proceeds toward the deal. The acquisition of DJ Basin Assets from Bayswater Exploration would significantly increase the scope of the company’s operations and bolster its presence in the Denver-Julesburg Basin. PROP plans to use cash on hand, credit facility borrowings, and proceeds from the $200 million stock offering to fund the strategic deal.
Overall, PROP ranks 9th on our list of energy stocks that are losing this week. While we acknowledge the potential for energy stocks, 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 more promising than PROP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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