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Cleveland-Cliffs Stocks Tumble: What’s Next?

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
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Cleveland-Cliffs Inc.’s stock price decline is likely influenced by recent news highlighting challenges due to dropping steel prices, as on Monday, Cleveland-Cliffs Inc.’s stocks have been trading down by -7.95 percent.

A Quick Look at the Latest Developments

  • Recent reports show a steep year-over-year revenue decline and a significant shift from net income to net loss for Q4 2024, posing major challenges for Cleveland-Cliffs in a low-demand steel market.
  • New data reveals that Q4 revenue fell short of estimates, pegging it at $4.33B instead of the forecasted $4.40B, raising questions on future forecasts.
  • Analysts pointed out a Q4 loss per share of $-0.68, which missed expectations by $0.07, causing a dip in after-hours trading.
  • The challenging trajectory for Cleveland-Cliffs is exacerbated by persistent low steel prices and excess imports, casting a cloud over near-term recovery.

Candlestick Chart

Live Update At 10:37:30 EST: On Monday, March 10, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -7.95%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Earnings Snapshot: A Closer Examination

Recent earnings from Cleveland-Cliffs have left traders scratching their heads. Despite efforts to stabilize, revenue for Q4 stood at $4.33B, missing FactSet’s expectations. The company recorded a Q4 loss of $-0.68 per share, more than forecasted. A deep dive into these numbers unravels a landscape where a challenging steel demand landscape is taking its toll. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” This advice resonates with traders confronting the current turbulent markets.

Markets reacted negatively to revelations of Cleveland-Cliffs’ staggering slides in net income, transforming into substantial losses. Integral numbers like revenue per share hint at a slowdown, something that has fueled skepticism in the face of promising figures once. Even as the gross margin indicates a promising 100%, declining revenue and a precarious economic terrain for steel suggest rough waters ahead.

More Breaking News

Yet, as indicators like EBIT margin reflect a negative performance, the silver lining is found in debt to equity ratios demonstrating more stability. What needs addressing, however, is navigating through excess imports, low steel prices, and an economic climate harsh for metals. Against this backdrop, a 5.6% pre-tax profit margin and revenue decline over three years paint a stark image of the challenges ahead.

Performance and Stock Movements

The stock trajectory of Cleveland-Cliffs paints a vivid story of volatility. After initially holding its ground, the shares slipped following earnings releases. Trading data demonstrates how minor fluctuations over hours could affect investor sentiment.

The opening price on Mar 10 indicated hope but the closing price painted the contrary. Intraday trading on Mar 10 revealed attempts of recovery, but shares ultimately closed lower. This rollercoaster charts the struggle as the company attempts to claw back lost grounds in a steel market fighting low prices and excess supply.

Looking at key financial metrics like inventory values and leverage ratios supports the need for cautious optimism. Their aggressive measures amidst adverse trade policies could shape its path. While long-term debt is a concern, the debt levels show signs of controlled management.

Given current dynamics, the story conveys a picture of caution interspersed with optimism. Investors ponder over if recalibrations in strategic plans, potentially minimizing losses, could steer Cleveland-Cliffs out of this tailspin.

Reality Check: Challenges and Opportunities

With the present metrics emphasized by a dismal earnings report, Cleveland-Cliffs finds itself at crossroads. While profitability takes a hit, discussions over strategic direction, market conditions, and steel import policies become vital. Industry insiders argue the landscape needs urgent review but the actual demand resurgence and price stability lie at the heart of the solution.

Looking ahead, Cleveland-Cliffs may need to rethink its approach to market pressures. Long-term success depends on optimizing production in alignment with fluctuating steel demands and crafting policies that offer insulation against global economic shifts.

Navigating these challenges, Cleveland-Cliffs stands a choice: innovate or risk further declines within an industry slipping into turbulent tides. Maintaining cost-effective production while cutting reliance on recycled steel could elevate prospects.

Conclusion: What Lies Ahead?

In closing, while Cleveland-Cliffs hones its efforts to rectify short-term hiccups, the horizon promises challenges. Confronting excess imports, price fluctuations, and an ever-evolving steel industry landscape becomes inevitable. Observers posit a necessity for adaptability and resilience as Cleveland-Cliffs reshuffles its long-term strategy.

The current quagmire, marked by revenue misses and declining profits, offers fodder for debate. As Cleveland-Cliffs strategizes and recalibrates finances, trader focus will likely shift to how well they pivot amidst external pressures and internal recalibrations. In the world of trading, as millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.” This mindset may well influence Cleveland-Cliffs’ approach as they navigate turbulent waters. As the steel industry evolves, time will reveal if these efforts indeed materialize into profitable ventures or lead to persistent stumbles.

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”