Why Pony AI Inc. (PONY) Went Down On Wednesday

We recently published a list of These 10 Firms Were Battered by Dismal Earnings, Outlook Guidance. In this article, we are going to take a look at where Pony AI Inc. (NASDAQ:PONY) stands against other worst-performing stocks on Wednesday.

A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy’s contraction in the first quarter of the year, triggering fears of recession.

Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent.

Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year.

In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop.

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

Pony AI Inc. (NASDAQ:PONY)

Pony AI saw its share prices drop by 5.8 percent on Wednesday to finish at $9.09 apiece as investors continued to book profits following Monday’s surge, with news of its entry into the robotaxi industry already priced in by the investing public.

According to reports earlier this week, Pony AI Inc. (NASDAQ:PONY) is setting its sights on the robotaxi industry, especially that it is now able to build its autonomous driving system for 70 percent less.

Pony AI Inc. (NASDAQ:PONY) is originally an autonomous driving technology company that only supports carmakers in making vehicles autonomous.

In an interview with CNBC on Friday, PONY CEO James Peng said that the firm is currently in talks with Tencent Cloud to offer robotaxi services on the latter’s WeChat and other applications. He said both parties will benefit from the latter’s huge user base and cloud offerings.

In other news, PONY is set to release the results of its first quarter earnings performance on Tuesday, May 20, 2025.

Overall, PONY ranks 8th on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of PONY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PONY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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