25 top losers: Why FICO, SMCI, and VIPS stocks dropped sharply

U.S. equity markets declined on May 20, 2025, as investors digested persistent inflation concerns, hawkish Federal Reserve signals, and growing trade frictions. While the S&P 500 shed 0.4% to break a six-day winning streak, the broader decline extended to high-growth names, consumer cyclicals, financials, and industrials. Here’s a breakdown of the 25 biggest decliners of the day and the market dynamics that contributed to the rout.

Why Did Eagle Materials Inc. (EXP) Fall Over 8%?

Eagle Materials Inc. plunged 8.79% to close at $220.69. The building materials producer was hit by bearish sentiment following weak housing starts data and slowing demand in the commercial construction segment. With interest rates remaining elevated and mortgage affordability constrained, analysts are now trimming earnings estimates for the back half of 2025. Despite a modest P/E of 15.79, institutional selling spiked, especially from real estate-sensitive ETFs.

What Triggered Fair Isaac Corporation’s (FICO) Sharp Pullback?

Shares of Fair Isaac Corporation dropped 8.11% to $2,027.00, as investors rotated out of high-multiple fintech names amid concerns about credit normalization. With rising delinquencies and regulatory scrutiny on algorithmic scoring models, the 87.5x earnings valuation appears stretched. The selloff was compounded by profit-booking after a strong YTD gain of over 60%.

Why Did ZTO Express (ZTO) Slide?

ZTO Express fell 8.04% to $17.50 after posting weaker-than-expected Q1 results. Analysts flagged rising price competition in China’s logistics sector and slowing parcel volume growth. Delisting fears and cross-border audit tensions further weighed on sentiment. The 23.1% YTD decline reflects diminishing confidence in Chinese ADRs.

Vipshop Holdings (VIPS) Drops on E-Commerce Margin Pressure

Vipshop Holdings fell 7.18% to $14.36 amid soft forward guidance and intensifying online retail competition in China. With macroeconomic weakness pressuring consumer discretionary spending, margin compression in discount retail is expected to persist. Institutional flows showed moderate selling from Asian-focused hedge funds.

Dutch Bros Inc. (BROS) Sees Profit-Taking

Dutch Bros declined 6.19% to $67.46 despite posting strong Q1 same-store sales growth. The selloff followed after its nearly 100% rally over the past year, as valuations neared 173x trailing earnings. Rising input costs and franchise expansion risks are now a concern for investors repositioning away from high-beta consumer stocks.

Why Did Ubiquiti Inc. (UI) Decline Over 6%?

Ubiquiti Inc. closed 6.12% lower at $403.42 as tech hardware stocks pulled back broadly. Despite a 180%+ YTD rally, investors are pricing in slower enterprise IT spending and component supply risks. The company’s premium valuation and limited analyst coverage made it particularly vulnerable to sentiment shifts.

Trip.com Group (TCOM) Weakens on Asia Travel Worries

Trip.com dropped 5.54% to $63.38 as Asian travel recovery shows signs of plateauing. With fluctuating outbound travel policies in China and costlier international bookings, discretionary travel faces headwinds. Institutional outflows were seen across multiple China-exposed tourism plays.

Oklo Inc. (OKLO) Down Despite Nuclear Momentum

Oklo Inc. declined 5.44% to $37.57 after rallying over 400% this year. The small modular nuclear reactor company has seen speculative inflows amid clean energy hype, but its high volatility and lack of revenue generation led to a sharp correction on a risk-off day.

Viking Holdings (VIK) Sees Selloff Post IPO Surge

Viking Holdings fell 4.99% to $44.73. The cruise and river travel company, which recently listed, is now facing valuation discipline after strong early gains. Despite robust forward bookings, analysts flagged rising fuel costs and competitive pricing pressure.

Super Micro Computer (SMCI) Tumbles Again

SMCI lost 4.51% to close at $42.77, extending its year-to-date losses to over 50%. While the company remains a key beneficiary of AI hardware demand, investors are recalibrating expectations amid slowing server orders and tighter procurement cycles.

UBS Group (UBS) Drops Amid European Bank Pressure

UBS Group fell 4.36% to $32.28, tracking European financial sector weakness after renewed sovereign debt concerns in the EU. Institutional sellers cited valuation headwinds after the stock gained double digits YTD on post-Credit Suisse integration optimism.

NuScale Power (SMR) Corrects Amid Volatility

NuScale Power slid 4.24% to $23.48 despite long-term bullish sentiment on nuclear energy. As a pre-revenue SPAC de-SPAC entity, the stock remains sensitive to macro sentiment and funding concerns, especially with interest rates staying higher for longer.

Dream Finders Homes (DFH) Declines on Housing Data

DFH dropped 4.08% to $22.35 after U.S. housing permits and starts showed sequential weakness. While the homebuilder trades at a low P/E of 6.71, forward demand signals remain constrained by unaffordable mortgage rates.

Westlake Corporation (WLK) Extends Losses

WLK declined 4.05% to $76.20, reflecting ongoing weakness in the chemicals and materials segment. With global manufacturing output softening and demand from construction faltering, the stock is now down over 50% from its 52-week high.

AES Corporation (AES) Falls on Renewables Funding Challenges

AES dropped 4.01% to $11.24 amid concerns that rising rates are impacting financing for new renewable energy projects. As a highly leveraged utility with exposure to emerging market infrastructure, AES remains vulnerable to debt cost spikes.

Goosehead Insurance (GSHD) Sees Valuation Reset

GSHD dropped 3.96% to $108.40 despite a strong YTD rally of over 70%. Investors are questioning growth sustainability and operating leverage in a softening insurance market, especially given its lofty 90x earnings multiple.

Icahn Enterprises (IEP) Dips Again

IEP fell 3.94% to $8.53, as ongoing restructuring and litigation risk continue to pressure Carl Icahn’s flagship. The company is also dealing with investor concerns about dividend sustainability and regulatory scrutiny.

Norwegian Cruise Line (NCLH) Retreats

NCLH declined 3.91% to $18.17. The cruise operator is facing higher fuel costs, aggressive pricing from peers, and consumer sensitivity to vacation budgets. Analysts flagged high debt servicing costs as a near-term headwind.

Affirm Holdings (AFRM) Falls on Consumer Risk Fears

AFRM slid 3.81% to $49.74 as analysts raised alarms about increasing BNPL loan delinquencies. While revenue growth remains robust, Affirm’s exposure to subprime consumers is attracting caution amid tightening credit.

Kaspi.kz (KSPI) Slips on Emerging Market Jitters

Kazakhstan’s Kaspi.kz dropped 3.75% to $82.30, extending its recent losing streak. As an emerging market fintech, the company remains exposed to FX volatility and cross-border fund flows, especially amid global liquidity tightening.

Watsco Inc. (WSO) Drops on HVAC Demand Concerns

WSO declined 3.74% to $469.91, with analysts pointing to weakening HVAC equipment orders and seasonal demand tapering. Despite solid earnings, inventory overhang in commercial construction is a growing concern.

Melco Resorts (MLCO) Slides on Macau Trends

MLCO lost 3.74% to $6.18, as Macau gaming revenue came in below expectations. Slower VIP traffic and regulatory uncertainties continue to weigh on sentiment across the resort sector.

Texas Pacific Land (TPL) Corrects from Recent Highs

TPL fell 3.48% to $1,370.71. The land royalty giant is facing oil price volatility and speculation-related rotation. Despite a 130% YTD gain, its valuation remains under scrutiny.

American Eagle Outfitters (AEO) Down on Retail Headwinds

AEO declined 3.45% to $11.47, extending a multi-month slump. Shrinking margins, weak foot traffic, and cautious guidance are pressuring most mall-based retailers.

Alignment Healthcare (ALHC) Softens on Medicare Margin Pressures

ALHC dropped 3.45% to $15.68 amid Medicare Advantage reimbursement rate volatility. Payers are closely watching regulatory changes impacting profitability metrics.

Institutional Sentiment and Market Outlook

Institutional trading desks reported systematic de-risking across high-beta names and profit-booking in year-to-date winners. Defensive flows into healthcare and staples suggested rising macro caution. Options volume skewed bearishly on FICO, SMCI, and AFRM, reflecting hedging activity.

With inflation still sticky and the Fed pushing out potential rate cuts to Q4, markets are likely to remain volatile. Sectoral bifurcation between defensives and growth may persist into June.