Super Micro Computer Led the S&P 500 in the First Half. Walgreens Was the Top Loser.

Upbeat financial forecasts, provided on May 1, helped to send shares higher. The company continues to see strong demand for its AI-capable data centers.

But the shares ended the week through Friday in the red as investors have started to question whether valuations for big tech companies have gotten too high. Some people on Wall Street are anticipating a tech correction, which could involve stocks like Super Micro taking a hit.

While tech leads, Walgreens is faltering. The pharmacy chain has been the worst performer in the S&P 500 in 2024 after falling 54%, marking its worst performance yet for the first half of a year.

The stock took a beating on Thursday after the company announced plans to close underperforming stores, partly because of continued pressure on consumers. Walgreens also reported disappointing fiscal third-quarter adjusted earnings and cut its full-year guidance.

“We are at a point where the current pharmacy model is not sustainable, and the challenges in our operating environment require we approach the market differently,” CEO Tim Wentworth told investors. Pharmacy chains like Walgreens have been struggling because the reimbursement rates they receive from pharmacy-benefit managers to pay them for the prescription drugs they sell have plummeted.

“Our Underperform rating is predicated on an uncertain intermediate profit growth stream given market headwinds, notably reimbursement pressures, ongoing profit headwinds within the international retail business, and competitive dynamics,” BofA Securities analyst Allen Lutz wrote in a research note Thursday. He lowered his price target on the stock to $11 from $22.

Write to Angela Palumbo at angela.palumbo@dowjones.com