We recently published a list of 10 Firms Heavily Hit by Market Pessimism. In this article, we are going to take a look at where Warby Parker Inc. (NYSE:WRBY) stands against other firms heavily hit by market pessimism.

Wall Street finished in the red territory on Tuesday, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq dropped the highest among its peers, declining 1.71 percent. The S&P 500 followed with a 1.07-percent loss, while the Dow Jones decreased by 0.62 percent.

The market pessimism spilled over to various sectors, with 10 companies notably hit the most.

In this article, we have identified the 10 worst performers on Tuesday and detailed the reasons behind their drop.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in trading volume.

A woman wearing a stylish pair of eyeglasses walking through a shopping center.

Warby Parker Inc. (NYSE:WRBY)

Warby Parker declined by 12.43 percent on Tuesday to end at $17.82 each as investors sold off positions over concerns about its business amid the ongoing trade war.

Late Monday, Bloomberg Law posted on its social media platform that Warby Parker was one of the companies warning its shareholders that “anti-American consumer sentiment fueled by the Trump administration’s tariff wars poses a business risk.”

In a filing last month, WRBY also said that it was unable to mitigate the full impact of current and future tariffs.

“Costs on a significant portion of our products may increase further, which could reduce our margins or force us to raise prices, and our financial results may be negatively affected. Further increases in China tariffs will impact our business, and our financial results may also be impacted by any resulting economic slowdown,” it said.

With a substantial number of components from suppliers in China, the company acknowledged that inventory management may be affected.

Overall, WRBY ranks 2nd on our list of firms heavily hit by market pessimism. While we acknowledge the potential of WRBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as WRBY but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.