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Cleveland-Cliffs Inc. Dives: Market Woes Loom

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 7/30/2025, 5:06 pm ET 7/30/2025, 5:06 pm ET | 6 min 6 min read
Cleveland-Cliffs Inc. Dives: Market Woes Loom Thumbnail

Cleveland-Cliffs Inc. stocks have been trading down by -3.59 percent amid negative sentiment from falling steel demand and economic concerns.

  • Investigations are underway! The Rosen Law Firm announced that Cleveland-Cliffs might have given misleading information to investors. This has led to a class action lawsuit during July’s upheaval.

  • Financial reports spell trouble. Cleveland-Cliffs saw a dramatic drop in stock value following a larger-than-expected loss. In reaction, they planned to shut down some plants to cut costs.

  • The stock market wasn’t kind. Specifically, the stock faced a severe drop as several probes emerged related to misleading business claims.

Candlestick Chart

Live Update At 17:05:32 EST: On Wednesday, July 30, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -3.59%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Cleveland-Cliffs Inc.’s Financial Story

As millionaire penny stock trader and teacher Tim Sykes, says, “Preparation plus patience leads to big profits.” This saying holds especially true when it comes to trading in volatile markets. Traders often find success through meticulous research and deliberate strategies. By dedicating time to understanding market trends and maintaining patience in decision-making, traders position themselves for significant gains. Proper preparation ensures traders are ready to act when opportunities arise, while patience prevents impulsive errors, leading to consistent profitability over time.

Cleveland-Cliffs Inc. has struck an alarming chord in this fiscal year. This powerhouse, initially known for innovating and producing prime materials for automotive giants, is now grappling with an identity crisis of sorts. Their financial reports showcase more than numbers—they paint a picture of trials and strategies tumbling in disarray.

Cleveland-Cliffs was sailing smooth waters. Their gross margins were soaring, hitting a mesmerizing 126.7%. It sounded unreal, yet it was a fact. But alas, adversity hit when they reported a jaw-dropping net loss and a revenue dip. Such events can dampen the spirits of any enthusiastic investor, and indeed, it did.

Serious doubt hung in the air. Could Cleveland-Cliffs regain its throne, or were the challenges too big? The steel market faced an issue: too much supply, not enough demand. Production kept rising, but potential buyers seemed scarce. Experts looked at 2027 with concern, predicting a glut that could rattle the industry. Cleveland-Cliffs, loaded with vision yet laden with problems, is at the heart of it all.

Then came the Rosen Law Firm’s class action pursuit. Accusations flew that Cleveland-Cliffs handed investors a rosy yet misleading view. Finger-pointing wasn’t the solution folks were looking for, yet it became part of the dialogue. Investors who’d placed their trust in the figures felt misled.

Quick Glimpse of Financial Metrics

Peering closely at Cleveland-Cliffs’ financial reports, we see a tale of contradictions. On one hand, gross profits were high, but on the other, their EBITDA and operating income plummeted. A harrowing net loss of $470M was reported. Such losses are not just figures. They trade-off precious market confidence. Operations had to be scaled down, which they did by idling several facilities.

Their valuation measures exhibit a staggering pricetobook ratio of 0.92 amidst soaring leverageratios. When numbers scream inconsistencies, cautious eyes widen. The broader narrative speaks of a steel titan caught betwixt aspirations and encumbrances. The receipts from Q2 delegations attest this with numbers like a cash position ending at a meager $5M, capitalized heavily at $112M, reflecting strategic but costly undertakings.

More Breaking News

The tale isn’t all somber. In a twist, Cleveland-Cliffs is strategically steering towards the automotive niche. Bold redirections like this always elicit mixed sentiments. Will the epiphany lead Cleveland-Cliffs back to prophetic opportunities, or is it just ironic optimism? Only time can tell.

Impact of Latest News Articles

Markets are battlegrounds where sentiments often reign supreme. Recent news narratives have catalyzed seismic shifts for Cleveland-Cliffs. Picture this: a justice-seeking endeavor unfolding through legal claims. The victims are alleged falsehoods dolling up truth. The stories grabbed market watchers’ attention, and their unrestrained nattering gave a fright to investors.

Stocks swayed. Concerns deepened. News like Cleveland-Cliffs confronting securities class action probes brought Wall Street on edge. Observers and stakeholders wondered if the upcoming chapters would further strike Cleveland-Cliffs’ market appeal. Will shareholders continue being the bewildered protagonists or rally as informed cheerleaders?

Amid amplified production forecasts for 2027, how these metaphorical tides will turn the steely ships is anyone’s guess. Today’s woes encompass past expectations and future speculations more than ever. Observations of these unfolding developments feed market chatter as potential revelations lie dormant within impending legal digests.

The Path Ahead for Cleveland-Cliffs Inc.

In discerning truth from tales, resilience becomes the currency. Cleveland-Cliffs, a giant within steel arcs, stands resilient albeit shaky. Grappling with adversity, its navigational prowess faces scrutiny. Are they merely sailing through turbulent seas, or reshaping pathways of profitability with untamed vigor?

Analysts speculate, predicting varying futures. Hope lies in Cleveland-Cliffs’ ability to tackle these woes head-on. Despite the gloomy projections, companies have charted volatile courses before and emerged stronger. Can they rewrite recent doldrums into melodies of opportunity? 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 mantra resonates as Cleveland-Cliffs cautiously charts its path forward, understanding that seizing the right moment is key.

Markets wait, keen and observant. Yet, the steel firm spirits itself, knowing the stakes are monumental. Lessons of present-day tomes will someday merge into strategic chronicles known only to Cleveland-Cliffs. With unforeseen chances still in play, only seasoned resilience buoyed by astute navigation might defy expectations. Stay tuned, the twist in the steel epic isn’t over yet.

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:

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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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”