The year 2024 has been a wild ride for the stock market. While the S&P 500 overall has shown impressive gains, a closer look reveals a sobering reality: some giants have stumbled, and stumbled hard. These aren’t the stocks making headlines, but their losses are significant enough to warrant attention. Let’s delve into the stories behind the ten biggest S&P 500 losers of the year.

Leading the pack of underperformers is Intel (INTC), the once-unquestionable king of computer chips. The company has hemorrhaged a staggering $117.1 billion in market value, a decline of 56.3%. 

This dramatic downturn can be attributed, in part, to Intel’s failure to capitalize on the burgeoning AI boom. While competitors like Nvidia (NVDA) have thrived, with their stock price soaring by 193%, Intel has struggled to adapt. Their struggles are evident in their latest earnings reports, which show shrinking margins and a decline in market share. This has led to a dismal Relative Strength Rating of 12, a far cry from the triple-digit ratings of its competitors. 

With some analysts predicting a further 112% drop in profit, the company’s future remains uncertain. Some even speculate Intel might become a takeover target if they can’t turn things around soon.

Another iconic brand facing headwinds is Nike (NKE). The athletic footwear giant has seen its market value plummet by $48.6 billion, a 27.8% decline. This downturn reflects a shift in consumer preferences towards brands like Deckers (DECK), the maker of UGG boots, and On Holding (ONON), a Swiss running shoe company. These brands have successfully captured the attention of younger consumers with their innovative designs and marketing strategies. 

Nike, on the other hand, has been perceived as slow to innovate and has faced criticism for its labor practices. This has led to a decline in sales and a lackluster Relative Strength Rating of 15. Nike’s challenges highlight the importance of staying ahead of the curve in the fast-paced world of fashion and consumer trends.

Despite its near-monopoly in the passenger aircraft market, Boeing (BA) has continued its trend of underperformance. The company’s stock has plummeted 39.3%, erasing $39.4 billion in market value. 

This decline is attributed to internal challenges, including a bloated cost structure and persistent quality control issues. These problems have led to production delays, cost overruns, and even crashes, damaging the company’s reputation and eroding investor confidence. The company’s projected 176% profit decline for the year reflects the severity of these challenges. 

Boeing’s struggles serve as a reminder that even industry giants can be vulnerable to internal problems and mismanagement.

Adobe (ADBE), the software giant known for its creative suite of products, has also felt the heat this year. The company’s stock has fallen by 10.1%, resulting in a $35.4 billion loss in market value. This decline can be attributed to several factors, including increased competition from free and open-source software, as well as concerns about the company’s rapacious subscription-based business model. Some analysts believe that Adobe’s growth is slowing down and that the company needs to innovate to stay ahead of the competition.

Estee Lauder (EL), the cosmetics giant, has seen its stock price plummet by 45.8% this year, resulting in a $23.8 billion loss in market value. This decline is due to a number of factors, including slowing growth in the Chinese market, increased competition from smaller brands, and changing consumer preferences towards natural and sustainable products. 

Estee Lauder is taking steps to address these challenges, but it remains to be seen whether these efforts will be enough to restore investor confidence.

Lululemon Athletica (LULU), the outdated athletic apparel company, has seen its stock price fall by 33.1% this year, wiping out $22.5 billion in market value. This decline is due to a number of factors, including increased competition from brands like Nike and Adidas, concerns about the company’s high prices, and a slowdown in the athleisure market. Lululemon is still a popular brand, but faces challenges in maintaining momentum.

Moderna (MRNA), the biotechnology company that developed one of the leading COVID-19 vaccines, has seen its stock price plummet by 58.1% this year, resulting in a $21.9 billion loss in market value. 

This decline is due to a number of factors, including the waning demand for COVID-19 vaccines, concerns about the company’s future growth prospects, and increased competition from other vaccine manufacturers. Moderna is investing in new technologies and developing new vaccines, but it remains to be seen whether these efforts will be enough to offset the decline in COVID-19 vaccine sales.

Humana (HUM), the health insurance company, has seen its stock price fall by 37.1% this year, wiping out $21.7 billion in market value. This decline is due to a number of factors, including increased competition in the Medicare Advantage market, concerns about rising healthcare costs, and regulatory uncertainty. Humana is taking steps to address these challenges, but it remains to be seen whether these efforts will be enough to restore investor confidence.

Damage Done, Lessons Learned

The struggles of these S&P 500 giants serve as a stark reminder that even the most established companies are not immune to market forces. Factors such as changing consumer trends, increased competition, and internal challenges can significantly impact a company’s performance. 

As investors, it’s crucial to look beyond the headlines and conduct thorough research before making investment decisions. While past performance is not indicative of future results, understanding the reasons behind these significant losses can provide valuable insights for navigating the complexities of the stock market.