Worst-performing Stocks in Nasdaq-100 during June 2025 Revealed
In the tumultuous financial landscape of June 2025, two prominent companies, AppLovin and Lululemon, faced significant challenges. While the reasons for Lululemon's decline remain unclear, AppLovin's stock experienced a dip due to two key events.
Firstly, investors were left disheartened when AppLovin was not chosen for inclusion in the S&P 500 during its June rebalancing. Analysts from Bank of America had even tipped AppLovin as a prime candidate for the prestigious index, generating widespread anticipation. This disappointment, coupled with negative investor sentiment, contributed to AppLovin's decline by approximately 11% in June.
Secondly, a damaging short-seller report by Culper Research further spooked investors. The report accused AppLovin and one of its major shareholders, Hao Tang, of having "extensive direct and indirect ties" to the Chinese government, alleging a "shady past." Concerns about "covert Chinese ownership" posing a national security threat added fuel to the stock's decline.
In contrast, Lululemon, an athletic apparel designer, decreased by a more significant 25% in June. The reasons for this decline are not specified, but the company's first-quarter fiscal 2025 results, reported on June 5, may have played a role. While the results showed revenue and EPS growth, investors focused on the downward revised forecast for fiscal 2025.
In July 2025, signs of recovery began to emerge for AppLovin. Financial analysts from major firms like Morgan Stanley and Goldman Sachs have raised their price targets on AppLovin shares due to strong free cash flow, margin improvements, and a growing ad platform. Scotiabank highlighted impressive free cash flow and significant buybacks, signalling solid fundamentals supporting the stock. Despite a cool-off earlier in the year, some analysts view the stock as poised for further gains based on operational strengths and current valuations.
Regrettably, no information was found regarding Lululemon's stock performance or decline in June or July 2025 in the provided search results.
In summary, AppLovin's June decline was driven by investor disappointment over index exclusion and negative reports questioning ownership ties to China, while July shows signs of analyst confidence returning. No details are available for Lululemon's stock over this period.
Money investors were dismayed when AppLovin, a finance-driven company, was not included in the S&P 500 during its June rebalancing, as analysts from Bank of America had predicted. This exclusion, accompanied by a short-seller report by Culper Research, which questioned AppLovin's ties to the Chinese government, led to a 11% decrease in AppLovin's stock in June. On the other hand, Lululemon, a company dealing with athletic apparel, also faced a decline of 25% in June, the reasons for which remained unclear. However, in July, finance analysts from firms like Morgan Stanley and Goldman Sachs raised their price targets on AppLovin shares, acknowledging strong free cash flow and margin improvements. Meanwhile, no details were found regarding Lululemon's stock performance in June or July of 2025. Despite earlier uncertainties, some investors see potential for further gains in AppLovin's stock, given its operational strengths and current valuations, while the performance of Lululemon's stock over this period remains undisclosed. The turbulent stock-market landscape of June 2025 saw gadgets and technology companies like AppLovin being impacted by investor sentiments and controversial reports.
