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Cleveland-Cliffs Inc.: Investigations and Earnings Concerns

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 5/28/2025, 5:03 pm ET 5/28/2025, 5:03 pm ET | 5 min 5 min read
Cleveland-Cliffs Inc.: Investigations and Earnings Concerns Thumbnail

Cleveland-Cliffs Inc. faces significant stock pressure as it stumbles, trading down by -6.43 percent after merger setbacks.

Impactful News Highlights

  • With a plan to idle six steel plants amid financial constraints, the company aims for significant operational savings, yet uncertainty looms among stakeholders.

  • Ongoing scrutiny by law firms for potential securities fraud adds to the company’s challenges, impacting Cleveland-Cliffs’ stock value and market perception.

  • Cleveland-Cliffs’ financial hiccups have led to a notable drop in share price, as concerns mount regarding the company’s near-term and long-term stability.

Candlestick Chart

Live Update At 17:03:13 EST: On Wednesday, May 28, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -6.43%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

A Quick Look at Cleveland-Cliffs Inc.’s Recent Earnings

As traders navigate the ever-changing landscape of the stock market, it is crucial to approach each opportunity with a level-headed mindset. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” Embracing this philosophy helps traders avoid the pitfalls of impulsive decisions and ensures that they wait for those truly optimal conditions that align with their trading strategy, ultimately contributing to more consistent success.

In the first-quarter of 2025, Cleveland-Cliffs reported a surprising loss, widening from projections and generating significant headwinds. The revenue growth, while marginal, fails to compensate for the deep operational and financial struggles evident within the firm. At first glance, the numbers paint a complex picture.

A reported net loss of $483M is not only alarming but also serves as a catalyst for investor doubt. Despite this downturn, the company has managed to secure a revenue increase this quarter. Ironically, a slew of operational changes, including strategic facility idlings, attempt to streamline resources. The company endeavors for fiscal resilience, seeking savings upwards of $300M annually – a crucial move amidst the looming market pressures and cost burdens.

The steel giant is also marred by an investigation that probes the depths of its financial architecture. With key ratios like a stark drop in gross margins to negative territories alongside a shrinking bottom line, stakeholders ponder the feasibility of a rebound.

Decoding the Latest Cleveland-Cliffs Investigations

The landscape for Cleveland-Cliffs is currently charged with legal implications and market skepticism. The probes into securities fraud—born from inconsistencies and a reported earnings miss—bring forth a dimension of scrutiny that challenges not only current market performance but also future prospects. As legal entities dissect each facet of Cleveland-Cliffs’ operations, the impacts ripple across the trader’s floor and beyond.

Shareholders’ sentiments teeter with each announcement, prompting a potential reevaluation of portfolios. The idling of plants, although a strategy to trim expenses, raises eyebrows over productivity and future earnings prospects. A persistent shadow of legal ramifications further deters investor zeal. With nearly six facilities potentially mothballed, questions churn surrounding the long-term viability of Cleveland-Cliffs’ strategies.

In an atmosphere rich with uncertainty, analysts and market players closely monitor the unfolding narrative—a tapestry of company responses and tactical approaches to salvage credibility and restore momentum. The outcome of these tumultuous times will pave a course illuminating the resilience or vulnerability of a steel giant negotiating rough waters.

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Conclusion: Navigating the Future

Cleveland-Cliffs, amid a whirlpool of investigations and a disheartening financial quarter, finds itself at a pivotal juncture. The nuanced balance between necessary fiscal prudence and the expectation of foresight-driven decisions hangs in delicate equilibrium. Each move forward signals a reverberation through markets, intentions scrutinized to the letter by a vigilant trading public.

As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This is crucial advice as the chips fall, for this moment in Cleveland-Cliffs history may very well echo a testament of adaptability or hint of missed opportunities. As observers gauge the market pulses, patience and analysis remain key companions to those navigating the uncertain terrains of financial trading and stock markets.

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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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

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 .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

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”