January 2025 was a bullish month for many Nasdaq-listed names. But that wasn't the case for all of them.
While the Nasdaq-100 index advanced 2.2% in January, a handful of its constituents (including a market favorite) lost quite a bit of ground. Here they are, from least bad to worst:
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Not every one of these stumbles has a specific catalyst. Monster Beverage, for example, mostly continued to peel back from an overheated rally that peaked in November 2024.
Other setbacks have clear causes, though. For instance, Nvidia shares were upended by the recent introduction of DeepSeek's AI platform, which reportedly provides a range of artificial intelligence solutions without the need for the number of processors typically required for comparable results. If this new approach to AI becomes the norm, Nvidia's AI processor business may not have as bright a future as once anticipated.
Comcast's stock fell in response to a drop in last quarter's broadband customers, while Electronic Arts shares crashed after it lowered its full-year revenue forecast thanks to tepid demand for its latest soccer video game title.
As for On Semiconductor -- last month's biggest Nasdaq-100 loser -- shares were already lagging headed into the new year, but this sell-off accelerated after a Truist analyst downgraded the stock from a buy to a hold on concerns of weak demand.
Now what? Obviously, market-defying sell-offs are alarming. They are also warning signs of bigger potential problems ahead. Don't take these warnings lightly.
Not all extreme pullbacks are red flags, however. Sometimes they're opportunities to step into compelling stocks at a discount. Indeed, whereas Comcast is currently surrounded by too many questions to merit owning at this time, every other stock on this list at least has a shot at dishing out longer-term upside from their present prices.
Just bear in mind that there may still be some lingering bearish volatility left to wring out.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage, Nvidia, and Truist Financial. The Motley Fool recommends Comcast, Electronic Arts, Nasdaq, and ON Semiconductor. The Motley Fool has a disclosure policy.