We recently compiled a list of the 10 Firms Mirror Broader Market Downturn Ahead of 2025. In this article, we are going to take a look at where QuantumScape Corporation (NYSE:QS) stands against the other firms that mirror broader market downturn ahead of 2025.
Ten companies mirrored a wider market downturn on Monday, as investors repositioned their portfolios in preparation for 2025.
On Monday, the Dow shed 0.97 percent or 418 points, while the S&P’s broader index decreased 0.95 percent or 56.48 points. The tech heavy Nasdaq registered the biggest decline, down 1.19 percent or 235.24 points.
In this article, let’s look at why some of the relatively larger-cap companies declined and what dragged down the performance of their shares.
A line of electric vehicles parked in front of a research & development building in San Jose, California.
QuantumScape Corporation (NYSE:QS)
QuantumScape Corporation (NYSE:QS), an American company that develops solid-state rechargeable lithium metal batteries for electric cars, registered a 7.73-percent decline in its share price on Monday to finish at $5.49 apiece.
In the past five and 30 trading days, the company’s valuation also marked an 8.5-percent and 5.58-percent increase, respectively. However, the year-to-date share price saw an 18.06-percent decline.
While there was no clear catalyst that would drag down the company’s share price, investors were believed to have sold off positions while waiting for fresh developments to perk up the market.
Quantumscape designs and manufactures superior lithium batteries. With automobile manufacturers recognizing that batteries with energy-storage capacity are necessary to make EVs viable, QuantumScape is poised to continue benefiting from the rapid growth of the EV market.
Overall, QS ranks 4th on our list of firms that mirror broader market downturn ahead of 2025. While we acknowledge the potential of QS as an investment, our conviction lies in the belief that 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 QS 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.