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Morgan Stanley Downgrades NextDecade as Shares Tumble

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 9/13/2025, 12:16 pm ET 9/13/2025, 12:16 pm ET | 6 min 6 min read
Morgan Stanley Downgrades NextDecade as Shares Tumble Thumbnail

On Thursday, NextDecade Corporation’s stocks have been trading down by -10.18 percent amid concerns over delayed LNG project funding.

Energy industry expert:

Analyst sentiment – negative

  1. Market Position & Fundamentals: NEXT demonstrates a strained market positioning with negative profitability metrics, including an EBIT margin of -27.46% and a return on equity of -40.6%. The company’s financial strength is under pressure, highlighted by a leverageratio of 22.8 and a current ratio of 0.9, indicating potential liquidity issues. NEXT’s enterprise value of $6,950,232,451, coupled with a price-to-book ratio of 6.63, raises concerns about valuation given their negative cash flow and net income of -$60,867,000. Despite a high pehighlast5years of 97.79, the company’s immediate financial trajectory remains challenging, mirrored by significant cash flow deficits, notably a free cash flow of -$735,515,000.

  2. Technical Analysis & Trading Strategy: Analyzing NEXT’s weekly price pattern, we observe a dominant downward trend with consecutive declines from $10.09 on 250908 to $6.88 on 250912. This decline is accompanied by increasing volatility, as denoted by the larger week-to-week swings, especially evident on 250910 with open and close at $8.085 and $8.1198 respectively. The recent candlestick patterns suggest bearish sentiment, reinforced by sustained lower closes. A tactical short position is advised, setting a stop loss slightly above the recent resistance of $7.0293. Monitoring volume for confirmation is crucial; reduced volume could signal buyer exhaustion, thus supporting the bearish outlook.

  3. Catalysts & Outlook: Recent market dynamics and analyst sentiment negatively impact NEXT, as evidenced by Morgan Stanley’s downgrade and subsequent price target adjustment to $10, heightening perceived risk. The stock’s performance worsened by a -6.6% drop to $7.55 and a sharp decline to $7.13 suggests investor unease, potentially catalyzed by sector trends unfavorably comparing to general energy benchmarks. Immediate resistance stands at $8.17, with a support level critical at $7. In conclusion, given the current market conditions and fundamentals, NEXT faces a significant uphill battle. This analysis crystalizes a sentiment of caution.

  • Shares of NextDecade have seen a substantial decline on various trading days, with the stock dropping 6.6% to $7.55, as investors react to the overall sentiment and market pressures indicated by recent analysis.

  • Another notable drop was observed with shares decreasing by 6.9%, closing at $7.13, reflecting broader concerns within the market about their financing and strategic positioning.

  • On a single day, NextDecade’s shares plunged by 17.8%, cutting down $1.76 to settle at $8.17, showcasing investor anxiety over its fiscal health and operational strategies.

Candlestick Chart

Weekly Update Sep 08 – Sep 12, 2025: On Saturday, September 13, 2025 NextDecade Corporation stock [NASDAQ: NEXT] is trending down by -10.18%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In a turbulent week for NextDecade, the company witnessed a series of downward price movements, deeply unsettling for investors. The stock’s itinerant journey began around $10.09, sliding progressively across the days to close at $6.88 — a clear signal of investor distress. This sharp decline is further aggravated by a concerning financial report that highlights their struggles in maintaining profitable operations.

From the financial figures revealed, several key metrics stand out. NextDecade reported a stark operating loss, with the EBIT margin remaining negative and their pretax profit margins faltering significantly. The quarterly earnings reveal a challenging landscape marked by a negative cash flow and high leverage. The revenue cycle is yet to portray stability, with unaudited figures showing weak revenue streams and escalating expenditure, putting the financial health under constant scrutiny.

The unappetizing P/E ratios, compounded with a high debt-to-equity ratio, drive home the precariousness of their financial standing. Investor concerns are valid, given the company’s negative returns on assets and equity, hinting at internal operational inefficiencies and heightened capital inadequacy risks.

More Breaking News

Conclusion

Given the backdrop of recent downgrades, declining stock performance, and the overarching challenges faced in scaling operations effectively, there is a palpable tension in the market concerning NextDecade’s future trajectory. The stark financial metrics, coupled with negative sentiments echoing through the trading floors, prompt caution among traders, signaling a watchful approach towards repositioning within NextDecade’s stock hierarchy.

As the market assimilates this information, keeping a keen eye on NextDecade’s strategic maneuvers will be imperative. As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.” This mindset is crucial as the company faces the challenging task of addressing profitability issues head-on and engendering powerful trader confidence to navigate these tumultuous waters. Should they manage to roll out viable growth strategies amidst these pressures, there may lie opportunities for value hunters in an otherwise bearish landscape.

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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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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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 .

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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”