Snap, First Solar, Reddit among biggest losers as broad selloff hits U.S. markets

The U.S. stock market experienced a broad and sharp correction on April 30, 2025, with over 20 publicly traded companies suffering significant single-day losses. The steep declines were triggered by a rare contraction in first-quarter GDP, compounded by geopolitical uncertainty, supply chain disruptions, and new import tariffs introduced by the Trump administration. These macroeconomic and policy developments unsettled investors, particularly in high-valuation sectors such as technology, renewable energy, healthcare, and e-commerce.

Investor sentiment weakened materially as traders reassessed earnings guidance, sector-specific risks, and inflationary pressures now being exacerbated by tariff-related cost escalation. Institutional and retail portfolios witnessed rebalancing amid increased volatility and a shift toward defensive assets.

How Did Broader Economic and Policy Developments Set the Stage for the Market Drop?

A contraction of 0.3% in Q1 2025 U.S. GDP was the immediate catalyst for the risk-off sentiment that swept through equity markets. The decline marked the first quarterly economic retraction since the COVID-19 pandemic and cast doubt on growth forecasts for the remainder of the fiscal year. Economists cited weakening consumer demand, slower capital expenditure, and subdued inventory investment as key contributors.

Adding to the pressure was the Trump administration’s rollout of a new trade policy regime anchored on a blanket 10% tariff on most imported goods, alongside elevated levies on imports from China, Mexico, and the European Union. Supply chains, already under stress from commodity shortages and freight delays, are now facing margin-eroding duties. Importers and manufacturers are particularly exposed, with downstream effects hitting sectors such as automotive, solar, packaging, and electronics.

Why Did Evolution AB and Lancaster Colony See Among the Largest Single-Day Losses?

Evolution AB (publ) saw its U.S.-listed ADR fall by 18.97% to $70.24. The online gaming technology provider, while headquartered in Sweden, has faced pressure globally due to growing regulatory scrutiny in its key markets, particularly in Asia and the Nordics. The company is also being impacted by geopolitical tensions in Eastern Europe and compliance concerns in newly opened jurisdictions. With valuation multiples now compressing across digital entertainment platforms, Evolution’s weak forward earnings visibility spurred aggressive selling.

Lancaster Colony Corporation dropped 16.03% to $161.99 following a quarterly update that revealed declining volumes in its retail food product division. Known for brands such as Marzetti and Sister Schubert’s, the company faces persistent inflation in packaging and raw materials. Despite some price increases, volume softness in grocery and foodservice channels has driven margin compression, with analysts now forecasting a more prolonged recovery in the consumer staples segment.

What Triggered the Declines in Snap, Reddit, and Other Digital Platforms?

Snap Inc. declined 15.79% to $7.66 after missing advertising revenue estimates and reporting weaker user growth. Despite ongoing efforts to monetise Spotlight and AR features, the platform continues to trail rivals in capturing ad budgets. Analysts flagged rising competition from Meta’s Instagram and TikTok, along with potential monetisation constraints under Apple’s privacy framework. Valuation reset and downward earnings revisions contributed to the sharp decline.

Reddit Inc., which had surged following its recent IPO, fell 8.07% to $112.28 as investors locked in gains. Despite community engagement growth, questions about its long-term ad model sustainability and profitability weighed on the stock. The company remains unprofitable and is investing heavily in AI moderation and adtech infrastructure, keeping pressure on its EBITDA margins.

Hims & Hers Health, Inc. declined 7.91% to $32.27. While the stock had surged earlier in the year, analysts have raised concerns about customer retention rates and regulatory risks tied to telehealth-prescribed pharmaceuticals. Short interest in the stock also rose this week, suggesting increased bearish positioning from institutions.

Why Are Super Micro and First Solar Facing Sharp De-Ratings?

Super Micro Computer, Inc. dropped 15.56% to $30.40, adding to its year-to-date losses of over 50%. The AI server manufacturer revised down its Q3 earnings outlook earlier this month due to excess inventory, delayed customer deployments, and transition lags to next-generation hardware. Despite being a key AI beneficiary in 2023, the stock has struggled in 2025 amid aggressive earnings downgrades and valuation recalibration.

First Solar, Inc. fell 8.88% to $125.05 as renewable energy equities came under pressure from slowing utility-scale project deployment and rising input costs. New tariffs on Chinese module components are also expected to raise procurement costs across U.S. solar supply chains. The company’s recent earnings beat was overshadowed by softer guidance, particularly in overseas markets.

What Sector-Specific Factors Hit Healthcare, Packaging, and Banking Stocks?

Bausch + Lomb Corporation dropped 15.23% to $11.63, extending a year-long downtrend. With operating income declining in both its Vision Care and Surgical segments, the company’s margin pressures reflect rising raw material costs and forex headwinds. Parent company Bausch Health’s debt refinancing also remains a market concern.

Sonoco Products Company declined 13.88% to $40.27. The consumer and industrial packaging firm reported weaker demand across its protective solutions and rigid paper containers business units. Industrial segment softness due to reduced manufacturing output and freight cost inflation further strained its profitability outlook.

First Interstate BancSystem, Inc. dropped 10.29% to $24.93. The regional lender faces margin pressure from falling net interest income and is reportedly exposed to commercial real estate, which has become a flashpoint for risk in the regional banking sector. The bank is also grappling with increasing funding costs as depositors continue shifting to higher-yield instruments.

Cruise Lines, Automotive, and Logistics: How Are Macroeconomic Conditions Impacting These Segments?

Norwegian Cruise Line Holdings Ltd. declined 8.49% to $15.90. The company has rebounded from pandemic lows but is now dealing with high operating costs, elevated debt servicing, and price-sensitive consumer behavior. Analysts also flagged signs of promotional discounting, which could impact yield in the quarters ahead.

Hertz Global Holdings, Inc. fell 9.39% to $6.66. The car rental firm is facing asset write-downs tied to its electric vehicle fleet and has seen residual values decline. Competition from ridesharing platforms and a weaker rebound in international travel bookings continue to weigh on the company’s recovery narrative.

Lineage, Inc. declined 11.49% to $50.00. The supply chain and cold storage logistics operator has reported slowing volume growth and declining EBITDA margins. With global trade flows softening and freight inflation eroding pricing power, the post-IPO premium has sharply compressed.

What Do Institutional Flows and Sentiment Reveal About the Current Correction?

Institutional sentiment turned risk-off across key sectors on April 30, with fund outflows observed in ETFs tracking tech, consumer discretionary, and solar stocks. Short interest surged in stocks such as Snap, Super Micro, and Hims, suggesting elevated bearish positioning. Buy-side desks were seen rotating into utilities, energy, and large-cap pharmaceuticals.

Sell-side analysts revised down price targets for a number of decliners including Etsy, Garmin, and Glencore, citing earnings compression, weaker guidance, and geopolitical risk. Defensive hedging using volatility instruments also rose, indicating low conviction in near-term market upside.

Retail investor flows, tracked via brokerage activity and options open interest, were mixed—some dip-buying was noted in Reddit and First Solar, while outflows were observed in Snap and Hertz. Analysts expect choppier trading conditions ahead as Q2 earnings guidance is digested against the backdrop of slowing economic momentum and policy-related disruption.

What’s the Investment Outlook for Stocks That Led the Declines?

While some stocks may find valuation support, especially in sectors like solar and AI servers, others face more fundamental challenges. Snap, Etsy, and Root will require visible revenue re-acceleration to regain investor confidence. In contrast, firms like Avnet, Sonoco, and First Interstate may struggle with cyclical and structural headwinds as global economic activity cools.

With macro conditions deteriorating and policy risk elevated, market participants are likely to remain selective, favoring quality balance sheets, pricing power, and low earnings volatility. The second half of 2025 will be critical for determining whether this correction morphs into a broader bear cycle or stabilizes as economic data recalibrates.