Why Sweetgreen, Inc. (SG) Crashed on Tuesday?

We recently published a list of 10 Stocks Kick Off Trading Week With Losses. In this article, we are going to take a look at where Sweetgreen, Inc. (NYSE:SG) stands against other stocks kick off trading week with losses.

Wall Street’s main indices began the shortened trading week on a lackluster note, albeit finishing in the green, as investors continued to digest corporate earnings results.

The S&P 500 led the charge, recording a modest 0.24 percent gain. However, the Dow Jones and the tech-heavy Nasdaq posted gains of only 0.02 percent and 0.07 percent, respectively.

Ten companies performed poorly on Tuesday amid a series of negative catalysts that disappointed investors. In this article, we identified the 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A grinning customer being handed a gift card to enjoy their next meal.

Sweetgreen, Inc. (NYSE:SG)

Sweetgreen, Inc. (NYSE:SG) dropped its share prices by 9.49 percent on Tuesday, ending the trading session at $24.61 apiece as investors repositioned their portfolios ahead of the company’s release of 2024 earnings performance on February 26.

In particular, investors adjusted their portfolios amid news that its subscription experiment, Sweetpass which it attempted to offer two years ago, is coming to an end. The abandonment of the program particularly signaled challenges to the company in finding a scalable business model to boost growth.

According to reports, Sweetgreen, Inc. (NYSE:SG) is set to discontinue subscription programs and launch a new loyalty program called SG Rewards, a free program that will allow guests to earn points for every dollar spent.

News reports quoted SG CEO Jonathan Neman as saying that the company is now focused on having more direct relationships with customers.

“Loyalty is going to be a big piece of this puzzle,” he said.

Overall, SG ranks 2nd on our list of stocks kick off trading week with losses. While we acknowledge the potential of SG as an investment, 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 as promising as SG 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.