Cogent Communications (NASDAQ: CCOI) stock is getting crushed in Monday’s trading. The internet service provider’s share price was down 34.9% as of 1:30 p.m. ET. The S&P 500 was down 0.4% at the same point in the daily session, and the Nasdaq Composite was off 0.3%.
Cogent published its first-quarter results before the market opened this morning, and the market is having an intensely negative reaction to the release. The stock is now down roughly 73% over the last year.
Image source: Getty Images.
Cogent stock is looking like one of the stock market’s biggest losers today.
Cogent Communications (CCOI 35.34%) stock is getting crushed in Monday’s trading. The internet service provider’s share price was down 34.9% as of 1:30 p.m. ET. The S&P 500 was down 0.4% at the same point in the daily session, and the Nasdaq Composite was off 0.3%.
Cogent published its first-quarter results before the market opened this morning, and the market is having an intensely negative reaction to the release. The stock is now down roughly 73% over the last year.
Image source: Getty Images.
Cogent posted mixed Q1 results
With its Q1 report, Cogent recorded a loss of $0.83 per share on sales of $239.1 million. While the company’s loss per share was actually $0.16 lower than anticipate, sales for the period missed the average analyst estimate by roughly $2.3 million. The business posted a smaller-than-expected loss, but the company still saw a net loss of roughly $39.5 million in the period.
Cogent Communications
Today’s Change
(-35.34%) $-8.19
Current Price
$14.97
What’s next for Cogent?
Wavelength revenue increasing 12.3% on a sequential quarterly basis and 90.8% year over year was a relative bright spot, but overall revenue for the company was still down 3.2% year over year. Investor expectations for higher wavelength revenue may actually be playing a significant role in the intense sell-off for the stock today. While it’s possible that investors may be overreacting to near-term shortfalls in business strategies that need longer to play out, Cogent’s continued losses and debt load are causing some investors to exit positions.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
