We recently published an article titled These 10 Companies Led Monday's Downturn. In this article, we are going to take a look at where Illumina Inc. (NASDAQ:ILMN) stands against the other stocks.

Wall Street's major indices kicked off the trading on a positive note, all finishing in the green territory, as investors brushed off fears of growing global trade tensions.

The Dow Jones rose by 0.38 percent, the S&P 500 grew 0.67 percent, while the Nasdaq rallied 0.98 percent.

However, 10 companies defied a broader market optimism, mostly due to a series of stock rating downgrades from investment research companies on the back of poor earnings guidance and dismal earnings performance.

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

A research facility with medical professionals surrounded by diagnostic equipment.

Illumina Inc. (NASDAQ:ILMN)

Shares of Illumina Inc. dropped for a third consecutive day on Monday, shedding 5.47 percent to end at $104.99 each as investors continued to sell off positions following a downgrade on its stock rating.

On Friday alone, investment banking and research company TD Cowen cut its stock rating for ILMN to “hold” after reporting dismal earnings performance for the full year 2024.

According to ILMN, net loss widened to $1.2 billion from $1.16 billion in 2023 amid a 2.9-percent drop in its revenues at $4.37 billion versus $4.5 billion year-on-year.

The company, however, achieved a net income of $187 million last quarter, a reversal from the $176 million net loss registered in the same period a year earlier.

According to TD Cowen, its downgraded outlook also considered the company's weaker-than-expected next-generation sequencing consumable growth, increasing competition, and geopolitical risks in China.

Overall ILMN ranks 5th on our list of Monday's worst performers. While we acknowledge the potential of ILMN 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 timeframe. If you are looking for an AI stock that is as promising as ILMN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

Disclosure: None. This article is originally published at Insider Monkey.