We recently compiled a list of the 10 Stocks Defy Market Optimism as Investor Caution Lingers. In this article, we are going to take a look at where Hercules Capital, Inc. (NYSE:HTGC) stands against the other stocks.

The stock market stood its ground on Wednesday, with all major indices eking out gains as President Donald Trump softened trade restrictions for three large automakers, reviving hopes that the trade war may not be as bad as it seemed.

The Dow Jones grew 1.14 percent, the S&P 500 rose by 1.12 percent, while the tech-heavy Nasdaq jumped 1.46 percent.

On Wednesday, the White House granted three large automakers a one-month exemption from tariffs after a call with the president, sending their share prices higher during the session.

Ten firms, however, bucked an overall optimism, recording modest declines during the past trading session. In this article, we have listed the 10 names and detailed the reasons behind their performance.

To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An entrepreneur meeting with a financial advisor discussing venture debt opportunities.

Hercules Capital, Inc. (NYSE:HTGC)

Hercules Capital, Inc. (NYSE:HTGC) extended its losing streak for a third straight day on Wednesday, shedding 4.41 percent to finish at $19.09 apiece over the lack of catalyst to spark buying appetite, while investors also digest the potential impact of the ongoing trade war on its business.

Hercules Capital, Inc. (NYSE:HTGC), a specialty finance company providing loans to venture capital-backed companies, could be indirectly affected by any potential disruption in early growth stage companies it is invested in, and in turn affect its profitability.

In the fourth quarter of 2024, Hercules Capital, Inc. (NYSE:HTGC) saw net investment income drop by 5.69 percent to $81.1 million from $86 million in the same period a year earlier, while net investment income for full-year 2024 rose by 7 percent to $325.8 million from $304 million year-on-year.

Overall HTGC ranks 5th on our list of Wednesday's worst performers. While we acknowledge the potential of HTGC 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 more promising than HTGC 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.