Top 10 Failing AI Stocks that Recorded Over 50% Fall in 2022

Most AI stocks face strong headwinds, from high inflation and rising interest rates, here are the 10 of them

In this modern world, the rise of artificial intelligence, robotics, and automation are disrupting virtually every significant industry. Artificial intelligence adoption can reshape practically every industry including retail, healthcare services, transportation, and manufacturing. Thanks to its more extensive features and impressive advantages, an ever-increasing number of organizations are investing in artificial intelligence to reinforce and meet their business objectives. Henceforth, numerous organizations are taking a look at the best AI stocks for investment purposes in 2022. But, in this article, we will feature the 10 failing AI stocks that recorded over 50% fall in 2022.  

Lemonade

Lemonade is reinventing the insurance business, including how consumers apply for coverage and get claims approved. Its first AI bot, “Maya”, can approve or deny applications in two minutes, while its other bot, “Jim”, can make decisions on payouts to customers in as little as three seconds. The company had a rough first quarter due to payouts related to the “Texas Freeze” — another reason why the stock is down 65% from the all-time high it hit in January.  

Riskified

As the hype from its July IPO has faded, Riskified has been hit hard. It’s now down 47% from its all-time high. Riskified uses AI to detect fraud in e-commerce transactions, and it has been effective at doing so. The company has a chargeback guarantee- if its platform approves a fraudulent order, it will cover the losses its client takes- and these losses are represented in its cost of goods sold.  

Upstart Holdings

Fintech lending platform Upstart Holdings, which uses artificial intelligence to evaluate borrowers’ creditworthiness, has also fallen victim to rising interest rates, with shares down more than 90% from their peak last October. Upstart crashed 56% in one day on May 10 when it reported earnings and cut its full-year revenue expectations to US$1.25 billion from US$1.4 billion.  

Affirm

Affirm, the buy-now, pay-later (BNPL) startup which offers interest-free pay schedules on some purchases and counts Peloton as its largest retail partner, has fared even worse this year. Its stock is down 81%. The fintech firm went public in January 2021 and has never been profitable, posting a net loss of US$54 million in the first quarter of the year, and Apple launched a BNPL service to directly compete with Affirm this month.  

Carvana Co.

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company’s platform allows customers to research and identify a vehicle; inspect it using the company’s 360-degree vehicle imaging technology; obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up from their desktop or mobile devices.  

Peloton

Peloton was one of the biggest winners of 2020 when work-from-home white-collar Americans bought its stationary exercise bikes and subscriptions in droves while gyms were closed during pandemic lockdowns. The stock rose almost sixfold from its September 2019 IPO at US$29 per share to a peak of US$167 in January 2021 after the company recorded its first two profitable quarters to wrap up 2020.  

Aurora

Aurora is delivering the benefits of self-driving technology safely, quickly, and broadly. Founded in 2017 by experts in the self-driving industry, Aurora is revolutionizing transportation – making it safer, increasingly accessible, and more reliable and efficient than ever before. Its flagship product, the Aurora Driver, is a platform that brings together software, hardware, and data services,  to autonomously operate passenger vehicles, light commercial vehicles, and heavy-duty trucks.  

GoodRx Holdings, Inc.

GoodRx Holdings, Inc., through its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing and access to negotiated prices through GoodRx codes that are used to save money on prescriptions across the United States.  

Asana

Asana helps teams orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 119,000 paying customers and millions of free organizations across 190 countries. Global customers such as Amazon, Japan Airlines, Sky, and Affirm rely on Asana to manage everything from company objectives to digital transformation to product launches and marketing campaigns.  

Wayfair

Wayfair is the destination for all things home: helping everyone, anywhere create their feeling of home. From expert customer service to the development of tools that make the shopping process easier, to carrying one of the widest and deepest selections of items for every space, style, and budget, Wayfair gives everyone the power to create spaces that are just right for them.