Those Stocks Scared Investors Ahead Of This Halloween🎃 — Market Losers of 2025

While some giants like Rheinmetall and Nvidia continue to dazzle investors, others are facing a true stock market nightmare. We looked at which shares have turned into financial disappointments this year — and which companies have genuinely scared investors across the United States, Europe, China, and Japan in 2025.

The AI-Powered S&P 500: Who’s Winning and Who’s Falling Behind?

The flagship U.S. stock market index, S&P 500, has already gained nearly 15% this year. At first glance, it looks like the bull market is in full swing. But a closer look reveals a far more divided picture — some stocks have soared over 100%, while others have lost half their value.

The biggest winners this year are concentrated in:

• Semiconductors and memory suppliers,

• Defense technologies and AI infrastructure.

On the flip side, we’ve seen sharp declines among retail and consulting firms, where high costs, tariffs, and weakening consumer demand have hit the hardest.

Consumers Tired of Inflation

Some of the most notable casualties among U.S. companies are Deckers Outdoor and Lululemon, whose shares have fallen by more than 50% since the start of the year.

Why? While a small segment of Americans is doing better than ever, the average consumer is fatigued by high prices and shrinking real incomes. The result is weakening broad-based consumption and an investor shift away from retail-driven brands.

Adding to the pressure are tariff risks that weigh on companies importing goods from outside the U.S. Even iconic names that once thrived on mass-market accessibility are now losing their competitive edge.

Artificial Intelligence – A Blessing for Some, a Curse for Others

AI has become Wall Street’s new growth engine — but not every company knows how to use it. Among the disappointments are EPAM Systems and Salesforce, which have failed to meet expectations and now look pale next to competitors benefiting from record investments in AI infrastructure.

The market has entered a “Winner Takes It All” phase — where leaders dominate, and laggards fade.

The Data Industry Under AI Pressure

Particular attention should be paid to Gartner Research and FactSet Research Systems, as investors increasingly wonder whether generative AI could undermine their business models.

More advanced AI systems are already reducing demand for traditional, high-margin analytics services. What once required a team of specialists can now be done by an algorithm — faster and cheaper.

As a result:

• Services that used to command premium fees are becoming easily replaceable,

• Barriers to entry are shrinking rapidly,

• And competitive pressure is growing by the month.

AI, therefore, brings not only growth but also the potential collapse of hundreds of legacy business models. One thing is certain — Wall Street is fickle. Today’s losers may surprise the market tomorrow with new strategies, sharper efficiency, and a return to profitability.

Europe’s Rollercoaster: Who’s Winning and Who’s Falling Off the Track?

Compared to Wall Street, Europe in 2025 looks like a real rollercoaster ride. While the U.S. enjoys steady growth, the Old Continent is split between spectacular winners and painful losers.

On the winning side:

• Rheinmetall – Germany’s defense powerhouse,

• Rolls-Royce – the British symbol of engineering excellence,

• and Orlen – Poland’s energy giant, surprising many by joining Europe’s top performers.

But there are plenty of losers too. Among them: SIG Group, the Swiss packaging producer. Against this backdrop, even Germany’s bruised automakers look like relative winners.

Denmark Under Pressure: From Euphoria to Disappointment

The biggest shock of the year comes from Copenhagen. Not long ago, Danish companies were Europe’s market darlings — today, they’re among the continent’s worst performers.

1. Novo Nordisk – From the Top Straight Into Turbulence
   The GLP-1 drug leader has seen its shares plunge 40%, as investors fear:

   • a price war in the U.S. obesity and diabetes market, and

   • new tariffs threatening its competitiveness.

   A stunning reversal for a company once hailed as Europe’s brightest star.

2. Pandora – The Jewelry Loses Its Shine
   The world-famous jewelry maker faces soaring production costs due to higher precious metal prices. Shares are down more than 35%.

3. Orsted – The Wind Has Turned
   Denmark’s renewable energy champion has suffered a similar drop. Forced to withdraw from costly offshore wind projects on the U.S. East Coast, Orsted faces a global headwind — the return of fossil fuels. With Trump’s administration prioritizing coal and nuclear power, the wind sector’s sentiment has soured. Europe could be next.

4. Coloplast – Surgical Precision, But Falling Profits
   The medical device maker’s shares have fallen over 25%. Out of Europe’s 36 weakest-performing stocks, four are Danish — an almost historic stroke of bad luck for such a small economy.

Big Players, Big Problems

It’s not just Scandinavia struggling. Across Europe, other major names are disappointing investors:

• WPP – the British advertising giant, down 55% this year amid weak demand and rising costs.

• Puma – losing ground to Adidas and facing another frustrating year.

Trade tensions and tariffs only deepen the challenges — and investors’ patience is wearing thin.

Europe at a Crossroads

2025 proves one thing: European markets hate stagnation. Defense and energy firms thrive amid geopolitical uncertainty, while luxury, fashion, and marketing companies wrestle with rising costs, tariffs, and falling margins.

Even the most stable firms can find themselves on a slippery slope overnight. On Europe’s rollercoaster — as in the markets themselves — only those with balance survive the ride.

JD.com Loses the Battle to Alibaba

Despite the ongoing trade war risk with the U.S., China’s Hang Seng Index has had a spectacular run, rising over 31% by October 22 — one of Asia’s best performances.

The drivers:

• Strong corporate balance sheets,

• A wave of technological innovation,

• And a maturing domestic capital market increasingly focused on shareholder value.

But not everyone benefited. For JD.com and Meituan, 2025 has been disastrous — their shares are down 36% and 4%, respectively. Why? Because Alibaba is back — and it’s back in force.

Alibaba Is Back in Control

After a few quiet years, Alibaba has regained its offensive edge, investing heavily in AI and new services to win back users lost to JD.com and Meituan.

In recent months, Alibaba has:

• Introduced AI features in its Amap app (China’s version of Google Maps),

• Added new restaurant and hotel recommendation systems,

• Launched discount and subsidy programs for users.

The result? Over 40 million users joined in a single day — a direct blow to Meituan’s dominance in local services. The market’s verdict was clear: Alibaba is reclaiming leadership, while rivals are losing momentum.

A Price War Eroding Margins

While Alibaba accelerates, JD.com and Meituan are stuck in a costly price war — offering endless coupons, free deliveries, and promotions to retain users.

Revenues may be rising, but margins are shrinking.

• Meituan is spending more to hold its delivery and local services base.

• JD.com is weighed down by logistics and marketing expenses.

Their quarterly reports tell the story:

• Sales up,

• Profits down,

• Operational efficiency weakening.

Meanwhile, the market no longer believes JD.com can catch up to Alibaba in AI — something that once seemed plausible.

Why Alibaba Wins

The key is scale and diversification. Alibaba boasts a robust balance sheet, massive cash reserves, and multiple revenue engines: Tmall, Taobao, AliCloud, Lazada, Amap, and more. This allows it to subsidize new ventures even if they generate short-term losses — profits from other segments offset them. JD.com and Meituan, by contrast, are more one-dimensional, lacking that flexibility. What's more Alibaba looks as one of the Chinese AI leaders.

Markets Reward Offense, Not Defense

In China’s fast-moving economy, momentum and narrative matter. Investors back the companies that set the pace, not those that merely respond.

After restructuring and rebuilding its image, Alibaba is once again seen as a visionary leader. JD.com and Meituan, meanwhile, look increasingly defensive — focused on survival rather than innovation. Financial markets always reward courage and capital. In the AI era, only those who combine both stay afloat.

The Shadows of China’s Rally

Behind the impressive market performance lie deeper problems in China’s e-commerce sector:

• Weak consumer spending post-pandemic,

• Cautious households,

• And tighter government regulation of tech firms.

In this environment, investors seek clear strategic advantage. Alibaba has flipped the narrative in its favor — JD.com and Meituan have not. China’s market is entering a slower, more selective growth phase, where only innovative and financially strong companies will attract investor attention.

Alibaba’s renewed energy and strategic aggression keep it center stage. But if the rally endures, it’s hard to imagine JD.com and Meituan staying sidelined forever. Their story isn’t over yet — and in China, even the beaten can stage a comeback.

Japan: Automakers and Seasoning Giants Under Pressure

Japan’s Nikkei 225 Index has had a strong year — up over 25% between January 1 and October 22.
The rally has been driven by a weaker yen, boosting exporters, and optimism over fiscal stimulus policies championed by new Prime Minister Sanae Takaichi.

Yet even in such a supportive environment, not all companies managed to ride the wave. Several have notably lagged behind.

The Auto Industry Struggles

The weakness is most visible at Hino Motors, a Toyota subsidiary focused on truck manufacturing. Facing stiff competition from China and cyclical headwinds, Hino plans to merge with Mitsubishi Motors — tied to Germany’s Daimler Truck — to survive the storm.

By 2026, Hino will deliver vehicles under a new brand, Archion, but for now, investors remain unimpressed.

The weak yen has not been enough to offset tariff risks weighing on Japan’s auto industry:

• Nissan and Mitsubishi are both down over 20%,

• While Toyota has gained 3% this year and 20% year-over-year.

It’s a clear signal: even global titans can’t escape the drag of protectionism and rising costs.

Kikkoman: When Soy Sauce Loses Its Flavor for Investors

Outside the auto sector, Kikkoman — the world’s leading soy sauce and Asian seasoning producer — has also come under pressure. Its shares are down 25% this year as growth concerns mount.

What’s behind the decline?

• Slowing expansion – fears that the boom in North America and Europe has peaked.

• Cost pressure – a new U.S. plant increased fixed costs, weighing on profitability.

• Weaker wholesale demand – Asian restaurant chains are highly sensitive to economic slowdowns.

Kikkoman remains a strong global brand, but the market is now pricing in slower earnings growth and lower capital efficiency in the coming years.

Investor Caution on the Rise

Kikkoman’s earnings growth may slow to around 1% annually by 2027, down from prior expectations of 3%.
Its return on equity is projected to fall from 12% to about 11%, and a negative JP Morgan rating in May further dampened sentiment.

For a company that derives 40% of its profits from wholesale operations, any global slowdown could be painful. The restaurant sector faces higher costs, while consumers remain “tired of inflation.”

At 20 times earnings, Kikkoman’s valuation still looks far from cheap — explaining investors’ growing caution. So, despite the Nikkei’s impressive performance, Japan’s market is becoming more selective. Exporters continue to benefit from a weak yen, but automakers and food producers are entering a phase of slower growth and tighter margins.