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Cleveland-Cliffs Stock Takes a Significant Dive: What’s Next?

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Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
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Cleveland-Cliffs Inc. is seeing significant downward pressure amid market concerns highlighted by regulatory challenges and a pessimistic earnings forecast. On Tuesday, Cleveland-Cliffs Inc.’s stocks have been trading down by -8.42 percent.

Recent Performance Overview

  • The company’s latest numbers show a dip in both annual and quarterly revenue, swinging from profit to loss. This shift is fueled by weak steel demand and falling prices.
  • Bankers lean cautious as Morgan Stanley slashes the stock’s target price from $13 to $11, owing to prevailing market obstacles.
  • The company reported a Q4 revenue miss, at $4.3B when compared to an expected $4.44B, leading to concerns about its financial health.
  • A broader global market downturn in steel, riddled with oversupply and imports, compounds the challenge for the company.
  • After revealing an underwhelming earnings report, CLF’s shares dipped in after-hours trading by a steep margin.

Candlestick Chart

Live Update At 11:37:34 EST: On Tuesday, March 04, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -8.42%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quarterly Earnings Breakdown

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Cleveland-Cliffs Inc.’s recent financial outings have been a whirlwind of challenges, as evident in the latest earnings report. The company revealed an adjusted loss of $0.68 per share, more significant than the anticipated $0.61 drop expected by FactSet’s analysts. Analysts point the finger at diminished steel demand, placing it as the lowest since 2010, ripping through what once seemed a robust financial fortress.

Further numbers reveal marketing and shipping woes, with a 3.8 million net ton shipment barely grazing expectations. From an analytical perspective, the company finds itself in murky waters wherein low steel prices mirror turbulent currents impacting overall profitability. A quick recap of the figures provides insight into why the market’s not singing praises for CLF.

Adding to the mix is the acquisition of Stelco Holdings. For the company’s strategists, it’s a hopeful growth lever, but the untamed wave of the current steel market may threaten new ventures’ success by raising questions around timing and calculated risk.

More Breaking News

Key Financial Metrics: Examining the Impact

The key ratios and financial reports lay bare the struggle for stability that Cleveland-Cliffs faces. Earnings before interest and taxes (EBIT) margins have receded deeply into the negative, reflecting the grim profitability outlook. A gross margin of 100 might initially sound promising, but further examination reveals profit margins in the red, painting a more troubling picture. The trail of not-yet-due debts and financial strength ratios suggest juggling not just steel but precarious market dynamics.

Total income for 2024 summed up at $19.18B, dropping sharply, juxtaposed against towering total liabilities, hinting at an uphill battle. A quick ratio of 0.4 highlights liquidity concerns—ingredients of an impending financial storm.

Moving down the asset board, receivable turnover at 11.2 speaks volumes about the short-term financial commitments met. However, Cleveland-Cliffs’ steel grip cannot halt the erosion of confidence that manifests within short-term investor circles.

Navigating Through Tough Market Conditions

In the swirling markets, Cleveland-Cliffs grapples with global steel demand. Unsettling economic markers, mixed with sustained steel imports, heighten the core challenges. Prices across the steel supply chain touch a new low—a nightmare for raw material-centric arrowheads like Cleveland-Cliffs.

Various financial giant watchers, such as Morgan Stanley, have reacted by adjusting price targets. $11 becomes the new anthem, striking at $13, edging on investor caution amidst heightened market dynamics. Financial news narratives underline that the steel market’s cloudy future casts long shadows on Cleveland-Cliffs.

Financial scrutiny uncovers more discourse—an ill-fated supply-demand equation for steel extends from transactional hiccups abroad to domestic competitive surges. In tandem, Cleveland-Cliffs works tenaciously to keep stride with market shifts that directly affect its core product offerings.

Looking Forward: Market Reactions and Potential Shifts

What does this mean for investors? Short-term signals highlight apprehensive turns, but long-term, industry shifts that favor Cleveland-Cliffs’ core product lines might guide financial realignment. The steel sector’s future glimmers faintly with possible rebound opportunities borne by necessary infrastructural revivals or trade agreements fostering corporate aspirations.

Continued global steel consumption analysis will reveal if Cleveland-Cliffs can convert current voids into growth catalysts. Yet, the narrative of the seas remains equal parts science and art, where a certain unpredictability trumps scripted forecasts.

A potential price rebound looms amidst calculated positioning and market adjustments. However, remember—a careful trade, not investment, serves illustrated reality best.

Conclusion: Where to From Here?

While uncertainties remain tethered to Cleveland-Cliffs’ immediate economy, a keen eye on market evolutions could lead to opportune openings. Traders should await cues from market rebalancing or shifts in steel dynamics. As challenges echo, so do arcs of hope and transformation that may steer Cleveland-Cliffs back on the growth journey. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This mindset can be crucial as you navigate the waters of the trading world, continuously learning and refining your approach.

Readers, find your anchor amidst the ebb and flow—analyze, reflect, and set those sails wisely for a stock, figuratively, in search of its North Star.

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This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”