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.
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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.