When you think of the stock market, especially the S&P 500, you probably imagine steady growth, big-name winners, and long-term wealth. But the truth is that not all stocks go up. Some come crashing down even though the rest of the market is climbing higher.
Over the past year, the S&P 500 has made a solid +8% gain, riding the wave of tech rebounds, AI hype, and economic resilience. But buried within that index are some serious losers—companies that bucked the trend in the worst way possible.
So if you’ve been wondering what the worst performing stocks today look like, here are five S&P 500 stocks that took a nosedive since March 2024. Each one has a story, and their cautionary tales are worth paying attention to for investors in the stock market.
1. Moderna (MRNA): -69% 📉
Biotech bust
Remember when Moderna was one of the hottest stocks during the COVID-19 pandemic? Those days are long gone. Vaccine demand has sharply declined, and with fewer COVID-related revenues coming in, the biotech giant’s sales have cooled off dramatically.
Moderna’s fall from grace is a reminder that hype and momentum don’t last forever. When a company’s entire revenue stream is tied to a single product—and that product loses demand—investors start running for the exits.
Lesson for new investors: Be careful with “story stocks” that blow up quickly. Their fall can be just as fast when the narrative fades.
2. Celanese Corp (CE): -65% 🧪
Chemical slowdown
Celanese isn’t a well-known name, but it’s a major player in chemicals and industrial materials. Unfortunately, it’s been squeezed by a one-two punch: higher raw material costs and slowing industrial demand. That has put serious pressure on their profit margins.
As inflation hits input prices and manufacturing activity slows globally, companies like Celanese suffer. It’s a cyclical business, and right now, the cycle is heading down.
Lesson for new investors: Know what kind of business you’re buying. Some sectors rise and fall with the broader economy.
3. Super Micro Computer (SMCI): -56% 🤖
AI hype can’t save overvaluation
This one might surprise you. Super Micro Computer was a darling of the AI boom, riding the wave of demand for servers and computing infrastructure. But even the AI narrative couldn’t protect it from valuation concerns and fierce competition in the semiconductor space.
After skyrocketing, SMCI’s stock came back to earth as investors realized it may have gotten ahead of itself.
Lesson for new investors: Even “the next big thing” can be risky if you overpay. Valuation still matters—don’t get caught up in the hype.
4. Estée Lauder (EL): -54% 💄
Beauty brand bruised by weak demand
Estée Lauder is a global cosmetics giant that owns famous brands such as Tom Ford, Jo Malone, and Clinique. However, its stock has been anything but glamorous this year. Weak consumer spending and sluggish sales in China have dragged down performance.
The luxury market isn’t immune to economic slowdowns, and Estée Lauder felt the pinch. When people tighten their budgets, expensive skincare and makeup are often the first to go.
Lesson for new investors: Even strong brands can falter when macro trends shift. Diversifying across sectors can help smooth out surprises.
5. Dollar Tree (DLTR): -50% 🛒
Discount on the discount store
You’d think a discount retailer would thrive when the economy gets tight. But Dollar Tree has had a rough year, dealing with rising costs, shrinking margins, and operational challenges. What’s even more concerning? According to DLTR’s latest earnings report, the low-income consumer—their core customer—is hurting right now.
With inflation still squeezing wallets and pandemic-era stimulus long gone, many budget-conscious shoppers are cutting back, even at the dollar store. That’s a bad sign when your business model depends on high volumes of small-ticket purchases.
Add in supply chain issues and competitive pressure from Walmart, Aldi, and even Amazon, and it’s no surprise DLTR finds itself among the worst performing stocks today.
Lesson for new investors: Defensive stocks aren’t always safe. Always dig into the fundamentals and recent trends before buying.
Final Thoughts
The S&P 500 may be up, but that doesn’t mean every stock in the index is thriving. In fact, some are in free fall.
If you are a young investor or just starting out, this is your reminder that even in a strong market, there will always be losers. Stocks like Moderna, Celanese, Super Micro, Estée Lauder, and Dollar Tree each show how hype fallout, macro headwinds, or business-specific struggles can drag down performance.
The worst performing stocks today are more than just red numbers on a chart—they’re real examples of why it’s so important to do your research, understand the risks, and not chase what’s hot just because it’s trending.
That said, it’s not all doom and gloom. Just as there are losers, there are also long-term winners that build wealth over time. If you’re curious about which companies have consistently created value, check out our post on The Most Valuable U.S. Companies Since 2001. It’s a great way to see the power of long-term compounding in action.
Investing isn’t about being perfect—it’s about being informed. These companies might bounce back, or they might continue to struggle. But by paying attention to why they dropped, you gain the insight to make better decisions in your portfolio.
Happy Investing!
