timothy sykes logo

Stock News

Cleveland-Cliffs’ Tumbling Fortunes: Future Uncertain?

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 6/5/2025, 5:03 pm ET 6/5/2025, 5:03 pm ET | 5 min 5 min read
Cleveland-Cliffs’ Tumbling Fortunes: Future Uncertain? Thumbnail

On Thursday, Cleveland-Cliffs Inc.’s stock has been trading down by -6.1 percent amid impending steel tariffs concerns.

  • An unexpected major adjusted loss and an 11% dip in year-on-year revenue caught the eyes of federal regulators. The steel giant also announced plans to temporarily idle six of its facilities.

  • Jefferies downgraded Cleveland-Cliffs from ‘Buy’ to ‘Hold’ and recalibrated its price targets from $10 to $6, painting a grim picture for future stock stability.

  • Citigroup, maintaining a neutral stance, readjusted their expected price targets for the company from $11 down to a stark $7.50, signaling investor caution.

  • Further legal scrutiny is aimed at Cleveland-Cliffs as multiple law firms investigate potential breaches in federal securities laws following the dismal financial disclosures.

Candlestick Chart

Live Update At 17:03:11 EST: On Thursday, June 05, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -6.1%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Overview of Recent Financial Performance

In trading, it’s important to remember that success doesn’t come overnight. As millionaire penny stock trader and teacher Tim Sykes, says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” Consistent effort and careful strategies tend to yield better results in the long run, allowing traders to build a strong foundation and minimize risks. It’s about understanding the intricacies of the market and making decisions that contribute steadily to your growth.

Cleveland-Cliffs Inc. has experienced some tough times. With a reported loss in the first quarter of 2025 amounting to $483 million, its financial health is on shaky ground. While the operational revenue increased from $4.3 billion to $4.6 billion, a closer look reveals deeper issues.

The company had to announce the idling of several plants, aiming for over $300 million in annual savings to mitigate their steep financial losses. The steel market’s unpredictability, with pricing pressures and surging costs, has heavily impacted CLF’s operations. It has doubled its adjusted EBITDA loss, yet Cleveland-Cliffs continues to emphasize liquidity preservation with austerity measures in place.

Performance metrics showed negative signs as well, with the EBIT margin at -8% and pre-tax profit margin at 4.8%. Profit margins, both controlled and complete, are deeply negative, indicating severe margin pressures that the company is under.

Examining cash flows and financial strategies reveals Cleveland-Cliffs is bracing itself for a long road to recovery. Despite harsh financial realities, with operating cash flow at -$351 million, investments and strategic debt management suggest leadership is not shying away from bold moves.

Reading the Tea Leaves of Latest News

Stock Downgrades: A Warning or Opportunity?

Jefferies and Citigroup’s downgrades hint at investor risks, yet they still portray an image of persistence. A dip in projected price targets does not lampoon the outlook entirely but calls for a potential course correction.

The company’s stock rapidly lost over 9% during after-market trading post disappointing Q1 financial revelations, suggesting jitters among shareholders. Still, the firm displays an underlying resilience.

Legal Scrutiny: A Worrying Development

Legal probes into Cleveland-Cliffs’ affairs add an extra layer of concern, sparking unease among stakeholders. Investigations probe deeper into potential fraud implications, particularly worrying considering the recent financial upheavals.

These allegations act as another obstacle for Cleveland-Cliffs, threatening the brand’s credibility and the shareholder tranquility.

More Breaking News

Conclusion: Facing the Future

Navigating through thick fog on troubled seas, Cleveland-Cliffs Inc. is categorized by traders and analysts alike as a company amidst a decisive turning point. With strategic pivots in operation, high debt expenses are continually peaking, yet the corporation remains anchored to forward-looking measures. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.”

The judicious path will demand diligence and adept capital management, ensuring the blips of revenue positivity can encase operational pivots, insulating Cleveland-Cliffs, and steering towards not just survival, but the eventual path to prosperity. With investigations underway, trader patience becomes even more crucial amid a world of uncertainty.

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.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
Read More

* 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”