Ten stocks fell sharply on Friday, with one falling to a new record low, as investors took path from a combination of macroeconomic uncertainties and corporate developments.
The stocks mirrored a broader market bloodbath, with all Wall Street indices losing 1 to 2 percent of their value during the day.
In this article, we name the 10 companies that were heavily battered and break down the reasons behind their drop.
To come up with the list, we only considered the stocks with a $2 billion market capitalization.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS)
Kratos Defense extended its losing streak to a third consecutive session on Friday, shedding 8.79 percent to close at $84.62 apiece and mirroring the broader market downturn, after President Donald Trump announced that he was not at all interested in a ceasefire with Iran.
“We could have dialogue, but I don’t want to do a ceasefire,” Trump was quoted as saying. “You know you don’t do a ceasefire when you’re literally obliterating the other side.”
The announcement dampened overall market sentiment amid lingering uncertainties and its further negative impact on the economy.
While originally a US-based company, Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) remains exposed to challenges related to supply challenges, especially as the company also sources components and materials from international partners.
In other news, Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) last week partnered with aircraft manufacturer Airbus for the completion of an integrated Uncrewed Collaborative Combat Aircraft (UCCA), which would combine the former’s X1-58 Valkyrie with the latter’s Multiplatform Autonomous Reconfigurable and Secure (MARS) system.
Featuring a 9.1-meter length, the drone can fly at an altitude of up to 45,000 feet and features a range of 5,000 kilometers. It can be fully autonomous or commanded by a Eurofighter, and is designed to take on sensitive mission tasks that are deemed too dangerous for the pilot.
9. USA Rare Earth Inc. (NASDAQ:USAR)
USA Rare Earth fell for a third straight session on Friday, shedding 8.82 percent to close at $16.24 apiece, as investors unloaded portfolios amid brewing tensions in the House of Representatives in relation to the government’s $1.58 billion investment into the listed firm.
In a 10-page letter on Thursday, Representative Zoe Lofgren accused Commerce Secretary Howard Lutnick of structuring the government’s investment into USA Rare Earth Inc. (NASDAQ:USAR), saying that even if the government decides not to pursue a stake in the company, the listed firm would remain reliant on a billion-dollar PIPE financing from Cantor Fitzgerald, which his family currently owns.
USA Rare Earth Inc. (NASDAQ:USAR) announced in January this year that it secured $3.1 billion worth of financing commitments from both the government and the private sector, $1.5 billion of which came from PIPE financing.
While the secretary has already divested his entire ownership in Cantor Fitzgerald upon joining the Cabinet, it is still being run by his sons.
“This deal creates a massive personal conflict by granting the Secretary of Commerce overwhelming leverage to influence the behavior of a private company while positioning him to promote the interests of his sons as a condition of his support,” Lofgren said.
Both USA Rare Earth Inc. (NASDAQ:USAR) and the Commerce Department have yet to release a comment regarding the issue.
8. Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers fell by 8.86 percent on Friday to close at $22.02 apiece, as investors unloaded positions amid a combination of market pessimism and profit-taking, having soared by as much as 88 percent already this month.
The company fell alongside the broader market, with the three major indices on Wall Street all slashing 1 to 2 percent of their value during the day.
Meanwhile, investors took the opportunity to book profits following the previous days’ surge, thanks to Hims & Hers Health Inc.’s (NYSE:HIMS) renewed partnership with Novo Nordisk.
Earlier this month, the two companies revived a previous collaboration that was botched last year after Novo Nordisk accused Hims & Hers Health Inc. (NYSE:HIMS) of deceptive marketing and failing to adhere to the law for continuing to sell its compounded GLP-1 products despite Novo already resolving the shortage of the FDA-approved Wegovy.
As part of the renewed agreement, Hims & Hers Health Inc. (NYSE:HIMS) will no longer actively market and sell its own knock-off treatments and will only offer Novo’s weight loss drugs.
It said, however, that the compounded versions would only be sold to a limited set of customers whose clinical needs cannot be met using the increasingly varied set of commercially available FDA-approved GLP-1s, and only if a provider determines that a compounded product is clinically necessary.
7. Uranium Energy Corp. (NYSEAmerican:UEC)
Uranium Energy extended its losing streak to a third consecutive day on Friday, shedding 8.96 percent to finish at $12.09 apiece, as investors unloaded portfolios amid lingering uncertainties from the ongoing tensions in the Middle East.
Part of the drop was sparked by questions about whether President Donald Trump would seize some 970 pounds of enriched uranium in Iran that the latter could potentially use to build nuclear weapons.
However, any further invasion could create a larger risk, as experts say that such a move cannot be done without the US having to deploy a sizable number of troops into Iran.
Adding to the sentiment were announcements from President Donald Trump that he was not interested in a ceasefire with Iran, which sparked further concerns for the global economy.
In other news, Uranium Energy Corp. (NYSEAmerican:UEC) earlier this month announced a dismal earnings performance in the second quarter of fiscal year 2026 ending January, having widened its net loss by 36 percent to $13.9 million from $10.2 million in the same period a year earlier, as sales fell by 59 percent to $20. 2 million from $49.75 million year-on-year.
In the six-month period, net loss shrank by 20 percent to $24.28 million from $30.39 million in the same comparable period, while sales dwindled by 70 percent to $20.2 million from $66.8 million.
6. Bloom Energy Corp. (NYSE:BE)
Bloom Energy fell by 9.94 percent on Friday to close at $150.12 apiece, as investors parked funds to mitigate risks from global uncertainties, while digesting a lost opportunity from a recently scrapped data center expansion between one of its customers and OpenAI.
Bloom Energy Corp. (NYSE:BE) declined alongside the broader market, with Wall Street’s three major indices all slashing 1 to 2 percent of their value during the session.
The drop was primarily triggered by President Donald Trump’s announcement that he was not interested in a ceasefire with Iran.
Tensions aside, sentiment for Bloom Energy Corp. (NYSE:BE) was also dampened by earlier news that one of its customers, Oracle Corp., and OpenAI had scrapped a plan to expand their AI data center in Abilene, Texas, after failing to agree on financing terms and changing capacity projections.
Investors, however, are on the lookout for more concrete developments amid reports that Facebook operator, Meta Platforms Inc., is setting its sights on the yet-to-be-expanded space following the botched deal.
Bloom Energy Corp. (NYSE:BE) in July last year partnered with Oracle to deploy power capacity to the latter’s select data centers in the US.
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