These Were the 2 Worst-Performing Stocks in the Nasdaq-100 in February 2025

By Will Healy, The Motley Fool | March 21, 2025, 11:25 AM

February 2025 wasn't the worst month experienced by the Nasdaq-100, but it wasn't great either. It fell by a little less than 3%. However, two components of that index suffered particularly brutal declines. As earnings came in and worries mounted, these stocks lost a significant amount of their value.

The question for these stocks' investors right now is whether the drop points to a long-term decline or if these stocks can stage a comeback. Let's take a closer look.

The two worst performers

The worst performer by far was The Trade Desk (NASDAQ: TTD). The company fell short of its own revenue number and had a P/E ratio of over 150, leading to a post-earnings plunge of almost 41% for the month.

The company reporting the second-worst performance was Tesla (NASDAQ: TSLA), which experienced a monthly loss of just under 28%.

TSLA Chart

Data by YCharts.

Tesla's earnings report came out on Jan. 29. A revenue decline amid higher sales volumes spooked investors. Also, during the month, falling sales abroad and concerns about distractions for CEO Elon Musk like the Department of Government Efficiency, as well as some of his recent personal actions, have worried the vehicle and battery manufacturer's investors.

Now, the question for both The Trade Desk and Tesla is where they go from here. The February drop continued for both stocks, with declines accelerating into March.

The aforementioned valuation had weighed on the Trade Desk before the revenue miss. Nonetheless, its P/E ratio is now down to 71, which should ease valuation concerns.

Tesla's P/E ratio began February at just under 200 before perception issues weighed on the stock. With the earnings multiple now at 114, Musk may have to make greater efforts to come up with a notable AI-related breakthrough or stoke more vehicle sales to placate investors.

Nonetheless, both companies remain leaders in their respective fields. Assuming execution can improve for both of them, investors could look at this time as an excellent buying opportunity for both stocks.

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*Stock Advisor returns as of April 1, 2025

Will Healy has positions in The Trade Desk. The Motley Fool has positions in and recommends Tesla and The Trade Desk. The Motley Fool has a disclosure policy.

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