Why AES Corporation (AES) Crashed Today

We recently published a list of 10 Firms Drenched in Red Today. In this article, we are going to take a look at where AES Corporation (NYSE:AES) stands against other firms that are drenched in red today.

Ten companies pulled back on Wednesday, booking hefty losses during the trading session, with investor sentiment weighed down by a flurry of government policies and dismal earnings performance in the last quarter of the year.

Meanwhile, the Dow Jones fell by 1.91 percent, the S&P 500 declined by 1.61 percent, and the tech-heavy Nasdaq dropped 1.41 percent.

In this article, let us take a look at the 10 companies that led a poor performance during the day and explore 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 in trading volume.

The AES Corporation (NYSE:AES)

The AES Corporation fell for a sixth consecutive day on Wednesday, dropping 9.88 percent to end at $10.13 apiece as investors seemed unimpressed by its newly bagged deal with technology giant Meta Platforms Inc.

On Wednesday, The AES Corporation (NYSE:AES) said that it entered into a long-term power purchase agreement to support Meta’s data centers with 650 MW of solar projects.

“By providing energy solutions that offer fast time-to-power and low-cost electricity, we continue to be the partner of choice for companies, like Meta, at the forefront of artificial intelligence innovation,” said The AES Corporation (NYSE:AES) President and Chief Executive Officer Andrés Gluski.

Additionally, The AES Corporation (NYSE:AES) said the partnership will boost employment opportunities for communities in Texas and Kansas.

The AES Corporation (NYSE:AES) is one of the leading US-based global power companies, with 32.7 GW in operation, a backlog of 12.3 GW of signed long-term PPAs, and a pipeline of 65 GW.

Overall, AES ranks 2nd on our list of firms that are drenched in red today. While we acknowledge the potential of AES 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 AES 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.