Dow Inc. Faces Critical Test as Shares Plunge to New Lows

The chemical industry heavyweight Dow Inc. finds itself navigating turbulent waters, with its stock performance reflecting deepening investor concerns. Share values have been trending downward for months as the company contends with declining revenues and contracting profit margins. The critical question for market participants is whether current levels represent a bottom or if further declines lie ahead.

Recent quarterly results released on October 23, 2025, highlighted the company's fundamental challenges. Dow reported an 8% year-over-year revenue decline, with volume reductions affecting all business segments—clear indicators of weakening demand. While the company managed to surpass earnings per share expectations, this achievement provided little comfort given the operating loss of $0.19 per share.

The company's operating EBIT witnessed a dramatic year-over-year contraction of $461 million, primarily driven by falling prices across its product portfolio. Management did secure some sequential improvement through cost-cutting initiatives and reduced maintenance expenditures, but these measures proved insufficient to offset broader market pressures.

Technical Indicators Signal Continued Weakness

From a technical perspective, the outlook remains concerning. Dow's stock recently breached its 50-day moving average, signaling a definitive downward breakout. More significantly, shares are trading more than 23% below their 200-day moving average—a strong indication of a firmly established bearish trend.

Should investors sell immediately? Or is it worth buying Dow Inc?

The $25.25 resistance level has proven insurmountable, with every approach to this price point triggering renewed selling pressure. Market analysts now identify the next potential support level at just $20.40. The Relative Strength Index reading of 22.2 suggests the stock is technically oversold, but this condition alone rarely sparks a sustained reversal.

Strategic Retreats and Financial Preservation

Long-term strategic initiatives have also faced setbacks. The company's ambitious multi-billion dollar Path2Zero project in Canada has been suspended, signaling financial constraints and a shift toward capital preservation. Capital expenditure plans for 2025 have been substantially reduced from an initial $3.5 billion to $2.5 billion.

On a more positive note, Dow has maintained its dividend payment of $0.70 per share and is exploring alternative financing avenues through strategic partnerships, including one with Macquarie Asset Management. Whether these measures will be enough to stabilize the downward trajectory remains uncertain.

Currently trading near its 52-week low, Dow's stock has lost nearly half its value since the beginning of the year. Operating in an industry facing significant headwinds and with a challenging outlook, the company confronts its most severe test in recent memory. The central question for investors has shifted from whether the decline will continue to how much further it might extend.