Wall Street’s main indices finished stronger on Tuesday, buoyed by the influx of more corporate earnings results.
The Dow Jones grew by 0.75 percent, the S&P 500 rose by 0.58 percent, and the Nasdaq was up by 0.55 percent.
Despite the wider market optimism, 10 companies managed to register declines, predominantly due to investors exercising caution coupled with companies’ dismal earnings performance during the past quarter.
In this article, we have identified Tuesday’s 10 worst-performing stocks and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. Rigetti Computing Inc. (NASDAQ:RGTI)
Rigetti Computing dropped its share prices by 3.90 percent on Tuesday to close at $8.86 apiece as investors repositioned portfolios ahead of the release of its first quarter earnings performance over the next few days.
The company, which reported a 1,175 percent wider net loss in the fourth quarter of 2024, is set to release the results of its key financial and operational highlights for the period January to March after market close on May 12, 2025.
In recent news, Rigetti Computing Inc. (NASDAQ:RGTI) was selected as one of the participants in the Defense Advanced Research Projects Agency (DARPA) Quantum Benchmarking Initiative (QBI), whose primary goal is to determine if any approach to quantum computing can achieve utility-scale operation by 2033.
According to Rigetti Computing Inc. (NASDAQ:RGTI), it will advance to Stage A, a 6-month performance period focused on its utility-scale quantum computer concept worth up to $1 million upon completion of program milestones.
9. Transocean Ltd. (NYSE:RIG)
Transocean Ltd. saw its share prices drop by 4.76 percent on Tuesday to finish at $2.2 apiece after kicking the year off with dismal first-quarter earnings performance.
In its latest earnings release, Transocean Ltd. (NYSE:RIG) said it swung to a net loss of $79 million from a net income of $98 million in the same period a year earlier, despite contract drilling revenues improving by 18.7 percent to $906 million from $763 million year-on-year.
Costs and expenses were higher by 11 percent at $844 million versus the $760 million in the same period a year earlier.
“While uncertain macroeconomic conditions have resulted in near-term market volatility, including commodity prices, Transocean is very well-positioned to navigate this evolving landscape. In addition to continuing to deliver strong operating performance across our highly contracted fleet, we remain engaged in constructive conversations with our customers on opportunities several years in the future,” said Transocean Ltd. (NYSE:RIG) Chief Executive Officer Jeremy Thigpen.
8. D-Wave Quantum Inc. (NYSE:QBTS)
D-Wave Quantum saw its share prices decline by 5.02 percent on Tuesday to finish at $7 apiece after being targeted by a short seller criticizing its core technology.
In its market report, short seller Kerrisdale Corp. said that D-Wave Quantum Inc.’s (NYSE:QBTS) core technology, quantum annealing, is at a “commercial dead end” that has already been abandoned by the rest of the industry.
It added that the company’s strategy, which emphasizes hybrid solvers for optimization problems, was misleading, saying that it was obscuring the actual mix of classical and quantum computing in its offerings to customers while charging a significant premium for the quantum branding.
D-Wave Quantum Inc. (NYSE:QBTS) has yet to respond to the allegations.
The company, based on its historical reporting dates, is expected to announce the results of its first quarter earnings performance in the second week of May 2025.
Last year, D-Wave Quantum Inc. (NYSE:QBTS) widened its net loss by 74 percent to $143.9 million from $82.7 million in 2023 primarily due to a $68.3-million charge related to the remeasurement of the company’s warrant liability that materially increased as a result of the significant price appreciation of the warrants. Meanwhile, revenues ended flat at $8.8 million.
7. XPeng Inc. (NYSE:XPEV)
XPeng Inc. extended its losing streak for a third straight day on Tuesday, dropping 6.32 percent to end at $18.67 apiece amid the lack of fresh catalysts to spark buying appetite, having already priced in its announcements at the Shanghai Auto Show.
In recent news, reports surged that XPeng Inc. (NYSE:XPEV) will introduce new electric sedans to the market as early as next week.
With an international code name of E29, the new vehicle was said to have a powerful powertrain as one of its selling points.
In other news, XPeng Inc. (NYSE:XPEV) officially entered the Polish market with the introduction of the flagship G9 SUV, the ultra-intelligent G6 coupe SUV, and the sleek P7 sedan, which has earned the prestigious Euro NCAP 5-star safety rating.
It also unveiled the futuristic eVTOL XPENG X2, signaling a bold new chapter in AI-driven mobility that spans from smart EVs to flying cars.
Poland followed XPEV’s expansion into Finland last month with the launch of its G6 and G9 SUVs.
Meanwhile, the company also confirmed that it would launch its G7 models in Australia in 2026 and will undercut the Tesla Model Y in terms of pricing.
6. Pony AI Inc. (NASDAQ:PONY)
Pony AI dropped its share prices by 6.49 percent to end at $9.65 apiece as investors resorted to profit-taking following Monday’s surge, supported by news that it was entering the robotaxi industry and nearing profitability.
According to reports quoting PONY’s chief technology officer, Lou Tiancheng, the company was already nearing profitability after clearing significant challenges on the costs of materials.
In a report by the Wall Street Journal, Tiancheng said that Pony AI Inc. (NASDAQ:PONY) can now build its autonomous driving system for 70 percent less.
PONY is an autonomous driving technology company that supports carmakers in making vehicles to become autonomous.
However, the company announced last week that it will start to develop an autonomous driving technology and offer robotaxi services soon.
In an interview with CNBC on Friday, Pony AI Inc. (NASDAQ:PONY) CEO James Peng said that the firm is in talks with Tencent Cloud to offer robotaxi services on the latter’s WeChat and other applications.
Peng said both firms will benefit from the latter’s huge user base and cloud offerings.
5. Webull Corporation (NASDAQ:BULL)
Webull Corporation extended its losing streak for a 10th consecutive day on Tuesday, as investors continued to book profits and sell off positions amid the lack of fresh catalysts to boost buying appetite.
Webull Corporation (NASDAQ:BULL) debuted on the Nasdaq on April 11 following a merger with SK Growth Opportunities, a special purpose acquisition company (SPAC).
On its second day as a publicly listed firm, the company soared by as much as 375 percent to $62.90 apiece.
Webull Corporation (NASDAQ:BULL), a financial services company, competes with Robinhood Markets Inc., Charles Schwab Corp., and E-Trade.
Earlier this week, Mad Money host and former hedge fund manager Jim Cramer said that Webull Corporation (NASDAQ:BULL) is an “absolutely no.”
“Webull is missing one word after bull. I’m going to say absolutely no to that one,” he said.
4. Option Care Health, Inc. (NASDAQ:OPCH)
Option Care Health dropped its share prices by 6.92 percent on Tuesday to finish at $30.69 each, as investors appeared to have shunned the results of its first quarter earnings performance.
In its latest earnings release, Option Care Health, Inc. (NASDAQ:OPCH) announced that its net income for the first three months rose by 4.2 percent to $46.7 million from $44.8 million in the same period a year earlier as revenues jumped by 16.3 percent to $1.3 billion from $1.146 billion year-on-year.
“The Option Care Health team’s execution in a dynamic environment produced another great quarter of results. Overall, we expect 2025 to be a productive year as we continue to invest in future growth to further expand patient access to quality care,” said Option Care CEO John C. Rademacher.
Looking ahead, the company expects net revenues to settle between $5.4 billion and $5.6 billion while adjusted diluted earnings are pegged at a range of $1.61 to $1.7.
3. NXP Semiconductors N.V. (NASDAQ:NXPI)
NXP Semiconductors saw its share prices fall by 6.94 percent on Tuesday to end at $182.62 apiece as investor sentiment was dampened by its dismal earnings performance and its chief executive’s decision to step down.
In its latest earnings release, NXP Semiconductors N.V. (NASDAQ:NXPI) said that net income attributable to shareholders for the first quarter of the year fell by 23 percent to $490 million from $639 million year-on-year, while revenues were down by 9 percent to $2.8 billion from $3.1 billion in the same comparable period.
In the same statement, NXP Semiconductors N.V. (NASDAQ:NXPI) said that its president and CEO, Kurt Sievers, has stepped down to pursue retirement. He was replaced by Rafael Sotomayor as president effective April 28, 2025.
“Rafael has been an integral part of creating and shaping NXP’s strategy and enabling the company’s success. We are confident he is ideally suited to assume the role of President and CEO at NXP, and to execute the company’s vision for leadership in the intelligent systems at the edge within the Automotive and Industrial & IoT end markets,” the company said.
2. Hertz Global Holdings, Inc. (NASDAQ:HTZ)
Hertz Global Holdings saw its share prices tumble by 13.63 percent on Tuesday to finish at $7.35 apiece as investors repositioned portfolios following announcements that it plans to raise as much as $500 million from debt.
Last week, the company said that it plans to tap the debt market anew in a bid to provide the company with liquidity and extend the maturity of a revolving credit facility that is set to mature next year. On top of this, the company already has $6 billion in debt, including a $500 million junk bond issued in December last year.
In other news, Hertz Global Holdings, Inc. (NASDAQ:HTZ) said it would announce the results of its first quarter earnings performance on May 12, 2025.
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is one of the leading car rental operators globally. It owns Hertz, Dollar, and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand.
1. Brinker International, Inc. (NYSE:EAT)
Brinker International, owner of the Chili’s brand and Maggiano’s Little Italy, saw its share prices drop by 14.80 percent on Tuesday to close at $136.89 apiece as investors, still reeling from the uncertainties globally, appeared to have shunned the company’s strong performance in the third quarter of the fiscal year.
In its latest earnings release, Brinker International, Inc. (NYSE:EAT) said net income expanded by 144 percent in the third quarter of fiscal year 2025 to end at $119.1 million versus the $48.7 million registered in the same period a year earlier.
Total revenues increased by 27 percent to $1.4 billion from $1.1 billion year-on-year.
Looking ahead, the company expects total revenues for the full fiscal year to settle between $5.33 billion and $5.35 billion, while earnings per share are pegged at a range of $8.5 to $8.75.
“Chili’s delivered another positive quarter in our turnaround with +31% same-store sales driven by +21% traffic,” said Brinker International, Inc. (NYSE:EAT) President and CEO Kevin Hochman. ”Our continued progress on the fundamentals of great food, great service in a fun, friendly atmosphere is clearly winning with guests.”
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