We recently compiled a list of the 10 Firms Kick Off 2025 Trading in The Red. In this article, we are going to take a look at where UWM Holdings Corp. (NYSE:UWMC) stands against the other stocks.

The stock market finished the first trading day of the year in the negative territory—a fifth straight day, over the lack of catalysts to spark trading appetite.

The Dow Jones Industrial Average was down the most by 0.36 percent, the S&P 500 decreased 0.22 percent, and the Nasdaq Composite dipped 0.16 percent.

Ten companies also kicked off trading mirroring the broader market downturn. In this article, let's explore the reasons behind their decline.

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

A woman examining her finances and a mortgage payment plan on her laptop.

UWM Holdings Corp. (NYSE:UWMC)

American mortgage lender UWM Holdings kicked off the first trading day of the year on a sour note, with its share price losing 3.92 percent or 0.23 points to finish at $5.64 apiece.

Investor sentiment seemed to have been dragged by news that higher mortgage rates, scarce inventory, and dismal affordability are plaguing the US property market and are set to linger until the end of the year.

At present, mortgage fees remained at a decades-long high, dampening demand for mortgage applications by 22 percent at the end of December.

Granted, December is typically the slowest month for home buying activity, but with the central bank now signaling caution around the pace of further rate cuts this year, hopes have been shelved that mortgage rates will fall sharply anytime soon.

Overall UWMC ranks 6th on our list of the stocks that crashed yesterday. While we acknowledge the potential of UWMC 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 timeframe. If you are looking for an AI stock that is more promising than UWMC 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.