Markets
The 25 Worst Stocks by Shareholder Wealth Losses (1926-2022)
The 25 Worst Stocks by Shareholder Wealth Losses (1926-2022)
Among publicly-listed U.S. companies, the 25 worst stocks have lost shareholders a collective $1.2 trillion since 1926. Put another way, just 0.1% of all stocks have led to 14% of all cumulative losses in shareholder wealth.
In this graphic, we use data from Henrik Bessembinder of Arizona State University to show the worst stocks of the last century.
How Are Shareholder Wealth Losses Calculated?
Bessembinder took three steps to measure lifetime shareholder wealth losses:
- Considered U.S. stocks in the Center for Research in Security Prices database from 1926 (or when the stock was first listed) until 2022 (or when the stock was delisted).
- Measured share price changes as well as cash flows to/from shareholders including dividends, spinoffs, share buybacks, and new share issuances.
- Calculated the excess wealth generated compared to investing in one-month Treasury bills over the same time period.
If a company exited the database during the period, Bessembinder calculated its delisting return based on any proceeds from mergers or acquisitions as well as estimates of any remaining value after delistings for negative reasons.
The 25 Worst Stocks in Modern History
With this context in mind, here are the worst stocks since 1926.
Rank | Company | Lifetime Wealth Losses | First Month | Last Month |
---|---|---|---|---|
1 | WORLDCOM | -$102B | Dec‐80 | Jul‐02 |
2 | RIVIAN AUTOMOTIVE | -$92B | Dec‐21 | Dec‐22 |
3 | VIAVI SOLUTIONS | -$87B | Dec‐93 | Dec‐22 |
4 | LUCENT TECHNOLOGIES | -$85B | May‐96 | Nov‐06 |
5 | WACHOVIA | -$68B | Jan‐73 | Dec‐08 |
6 | DUPONT DE NEMOURS | -$60B | Oct‐17 | Dec‐22 |
7 | DAIMLER | -$60B | Dec‐98 | Jun‐10 |
8 | QWEST COMMUNICATIONS INTL | -$59B | Jul‐97 | Mar‐11 |
9 | COUPANG | -$55B | Apr‐21 | Dec‐22 |
10 | NORTEL NETWORKS | -$54B | Dec‐75 | Jan‐09 |
11 | DEUTSCHE BANK | -$47B | Nov‐01 | Dec‐22 |
12 | COINBASE | -$45B | May‐21 | Dec‐22 |
13 | SPRINT NEXTEL | -$40B | May‐63 | Jul‐13 |
14 | BROADWING | -$38B | Aug‐00 | Jan‐07 |
15 | TIME WARNER | -$37B | Apr‐92 | Jun‐18 |
16 | KRAFT HEINZ | -$35B | Aug‐15 | Dec‐22 |
17 | ARCELORMITTAL SA LUXEMBOURG | -$35B | Sep‐97 | Dec‐22 |
18 | PALM | -$34B | Apr‐00 | Jun‐10 |
19 | UBER | -$34B | Jun‐19 | Dec‐22 |
20 | GLOBAL CROSSING | -$33B | Sep‐98 | Oct‐11 |
21 | DOORDASH | -$32B | Jan‐21 | Dec‐22 |
22 | PARAMOUNT | -$30B | Jul‐87 | Dec‐22 |
23 | SNOWFLAKE | -$30B | Oct‐20 | Dec‐22 |
24 | SYCAMORE NETWORKS | -$29B | Nov‐99 | Mar‐13 |
25 | AIRBNB | -$27B | Jan‐21 | Dec‐22 |
WorldCom, number one on the list, was a long-distance phone provider and handled internet data. In response to a surplus of telecommunications capacity that reduced pricing power, WorldCom began “cooking its books” to meet growth targets.
An SEC investigation of the accounting scandal found that executives improperly reduced costs by more than $7 billion and exaggerated revenue by at least $958 million. Once the fraud was discovered, WorldCom filed for the largest bankruptcy filing in American history as of July 2002.
Some of the worst stocks by lifetime wealth losses have gone public within the last few years. For instance, Doordash was one of the largest IPOs in 2020, with investor enthusiasm driving its share price 86% higher in the first day. The company has seen its revenue and U.S. market share increase, but it has yet to produce a 12-month profit.
Common Threads
Among the worst-performing stocks, there are some patterns. For instance, eight of the 25 stocks on this list belong to the telecommunications industry. Like WorldCom, many of these companies also engaged in accounting fraud to inflate their financial results.
Financial fraud can be hard to detect, but investors can look for potential red flags such as consistent sales growth while competitors are struggling. The SEC noted in its WorldCom investigation that “WorldCom claimed it was successfully managing industry trends that were hurting all of its competitors”.
Another commonality among some of the worst stocks was the hype around their IPOs. High valuations that are not supported by profitability may lead to large shareholder losses.
Maps
Mapped: The 10 U.S. States With the Lowest Real GDP Growth
In this graphic, we show where real GDP lagged the most across America in 2023 as high interest rates weighed on state economies.
The Top 10 U.S. States, by Lowest Real GDP Growth
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
While the U.S. economy defied expectations in 2023, posting 2.5% in real GDP growth, several states lagged behind.
Last year, oil-producing states led the pack in terms of real GDP growth across America, while the lowest growth was seen in states that were more sensitive to the impact of high interest rates, particularly due to slowdowns in the manufacturing and finance sectors.
This graphic shows the 10 states with the least robust real GDP growth in 2023, based on data from the Bureau of Economic Analysis.
Weakest State Economies in 2023
Below, we show the states with the slowest economic activity in inflation-adjusted terms, using chained 2017 dollars:
Rank | State | Real GDP Growth 2023 YoY | Real GDP 2023 |
---|---|---|---|
1 | Delaware | -1.2% | $74B |
2 | Wisconsin | +0.2% | $337B |
3 | New York | +0.7% | $1.8T |
4 | Missississippi | +0.7% | $115B |
5 | Georgia | +0.8% | $661B |
6 | Minnesota | +1.2% | $384B |
7 | New Hampshire | +1.2% | $91B |
8 | Ohio | +1.2% | $698B |
9 | Iowa | +1.3% | $200B |
10 | Illinois | +1.3% | $876B |
U.S. | +2.5% | $22.4T |
Delaware witnessed the slowest growth in the country, with real GDP growth of -1.2% over the year as a sluggish finance and insurance sector dampened the state’s economy.
Like Delaware, the Midwestern state of Wisconsin also experienced declines across the finance and insurance sector, in addition to steep drops in the agriculture and manufacturing industries.
America’s third-biggest economy, New York, grew just 0.7% in 2023, falling far below the U.S. average. High interest rates took a toll on key sectors, with notable slowdowns in the construction and manufacturing sectors. In addition, falling home prices and a weaker job market contributed to slower economic growth.
Meanwhile, Georgia experienced the fifth-lowest real GDP growth rate. In March 2024, Rivian paused plans to build a $5 billion EV factory in Georgia, which was set to be one of the biggest economic development initiatives in the state in history.
These delays are likely to exacerbate setbacks for the state, however, both Kia and Hyundai have made significant investments in the EV industry, which could help boost Georgia’s manufacturing sector looking ahead.
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