Why Did ReShape Lifesciences Plunge 11.04%? Earnings Miss, Bearish Sentiment

On April 14, 2025, ReShape Lifesciences experienced a significant drop of 11.04% in pre-market trading, reflecting a notable decline in investor sentiment.

ReShape Lifesciences Inc. reported a substantial decrease in revenue and gross profit for the fiscal year 2024, which has likely contributed to the recent market downturn. The company's strategic cost-cutting measures, while aimed at improving financial health, may not have been sufficient to offset the negative impact on investor confidence.

Additionally, the company's short interest ratio has been a point of concern, indicating a high level of bearish sentiment among traders. This, coupled with the overall market conditions, has likely exacerbated the stock's decline.