3 ‘Heartbroken’ Stocks on Valentine’s Day: Stocks in S&P 500 that fell in January 2024 

While the S&P 500 shows a robust start to the year, not all constituents within the index have experienced such success. The three stocks within the S&P 500 that we’ll be diving into have seen notable declines in January 2024, going against the positive performance of the market. 

From Tesla’s unexpected downturn following CEO Elon Musk’s cautious sales outlook, to Archer Daniels Midland’s sharp decline amid accounting investigations, and MarketAxess Holdings’ drop despite strong financial performance, these ‘heartbroken stocks on Valentine’s Day tell a tale of unexpected twists and turns in the market’s complex narrative. 

Here are the 3 stocks in the S&P 500 Index that have fallen the most in January 2024.  

Key Points 

• Tesla’s Q4 2023 revenue saw modest growth of 3% to $25.17 billion, but its stock plummeted by 12% in January 2024 after forecasts of slower sales growth. 
• ADM’s revenue fell 12.1% in Q3 2023, and its stock price dropped sharply by 24% in January 2024 amid investigations into accounting practices. 
• Although MarketAxess revenue increased by 10.9% in Q4 2023, its stock price still fell by 17.8% in January 2024, marking a significant downturn. 

1. Tesla Inc (NASDAQ: TSLA) 

Tesla is a leading manufacturer of electric vehicles and clean energy products. The company was founded in 2003 with the mission of accelerating the world’s transition to sustainable energy. Tesla’s products are known for their innovative design, high performance, and long range. The company also offers a variety of services, such as vehicle sales and leasing, solar panel installation and maintenance, and energy storage system installation.  

In Tesla Q4 earnings 2023, total revenue reported was $25.17 billion, a modest 3% increase compared to the $24.3 billing reports in the same period last year ^[1]. This marginal revenue growth in the automotive sector was largely attributed to a decrease in the average selling price, following substantial price reductions globally in the latter half of the year. Net income for the quarter surged to $7.9 billion, more than doubling from $3.7 billion a year earlier, primarily due to a $5.9 billion one-time noncash tax benefit ^[2]. 

In January 2024, Tesla’s stock price followed a downtrend, experiencing a 12% drop that erased $80 billion from the company’s market valuation ^[3]. This decline comes after CEO Elon Musk indicated that the company’s sales growth for the year might significantly fall short of the previous year’s, as Tesla focuses on developing its “next-generation” vehicle, which is expected to be a more affordable model. The stock closed at $187.29 at month’s end, reflecting a downward trend in Tesla’s market performance over the past month. 

2. Archer Daniels Midland (NYSE:ADM)  

Archer Daniels Midland (ADM), headquartered in Chicago, Illinois, operates globally in the food processing and commodities trading sector. It handles a variety of agricultural commodities such as oilseeds, corn, wheat, and cocoa, offering food ingredients and feed products to an international clientele. Additionally, ADM plays a significant role in the worldwide commodities market, dealing in a broad spectrum of agricultural, energy, and industrial goods. 

In the Q3 of 2023, ADM experience a 12.1% year-over-year decrease in revenues, totaling $21,695 million, with declines across its major segments: Ag Services & Oilseeds dropped by 13.9%, Carbohydrate Solutions by 7.1%, and Nutrition by 4.3% ^[4]. The net income for the quarter was totalled $821 million down 21% from $1.03 billion in the same period a year ago ^[5]. 

In January 2024, ADM stock price experienced a sharp drop in price by 24%, marking its largest one-day percentage decline since 1929 after news of its CFO, Vikram Luthar was placed on administrative leave as the company investigates accounting practices at its Nutrition segment ^[6]. ADM stock price fell 23.61% and closed at $55.58 in January 2024. Here is the chart of ADM’s market performance over the past month, which has been trending downwards.  

3. Marketaxess Holdings Inc (NASDAQ: MKTX) 

MarketAxess Holdings Inc, headquartered in New York, US, is a leading financial technology company offering electronic trading platforms for the fixed-income markets.  

The company facilitates the connection between a wide array of market participants, including institutional investors, broker-dealers, and banks, enabling them to trade a diverse range of fixed-income securities. Its platform is renowned for enhancing efficiency, transparency, and liquidity in the fixed-income trading process, contributing significantly to its modernisation. Besides trading services, MarketAxess also provides connectivity solutions, market data, analytical tools, and regulatory reporting across various fixed-income products.  

In their Q4 earnings result, MarketAxess Holdings Inc reported a 10.9% year-over-year increase in total revenues, reaching $197.2 million while for the full year of 2023, its overall revenue rose to $752.5 million, marking a 4.8% increase from the previous year ^[7]. The company recorded a 16.5% rise in net income, growing to $69.6 million from the previous year’s $59.2 million ^[8]. This was mainly due to significant advancements in enhancing their client franchise, boosting engagement through MarketAxess X-Pro, their new trading platform, and achieving solid growth in average daily volume (ADV) across new product areas and regions.  

Despite reporting strong financial results in 2023 with its full year revenue results, Marketaxess Holdings stock price still saw a drop in January 2024. This makes it the third-worst performer in the S&P 500 for the month, with its price falling 17.8% to $225.51 on the last trading day of January. Below is a chart depicting MarketAxess Holdings’ market performance in January, highlighting a sharp decline around the time of its earnings call announcement. 

Conclusion  

Despite experiencing a challenging start to January 2024, Tesla Inc, Archer Daniels Midland, and MarketAxess Holdings have shown resilience through their financial results and strategic advancements.  

The broader S&P 500, however, enjoyed a robust rally, leaving traders wondering if this positive momentum will continue into the love-filled month of February. The stock market, much like the complexities of a relationship, remains unpredictable, brimming with potential surprises and opportunities for those who stay dedicated. 

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