Poet Technologies (NASDAQ: POET) stock got dealt a crushing sell-off in Monday’s trading. The tech-hardware specialist’s share price sank 47.4% in the daily session.
Poet’s dramatic valuation pullback today came despite a relatively calm backdrop for the broader market. The S&P 500‘s level rose 0.1% in the daily session, and the Nasdaq Composite closed out the day up 0.2%.
Image source: Getty Images.
Poet’s share price has seen a dramatic reversal over the last week. Is this a buying opportunity?
Poet Technologies (POET 47.35%) stock got dealt a crushing sell-off in Monday’s trading. The tech-hardware specialist’s share price sank 47.4% in the daily session.
Poet’s dramatic valuation pullback today came despite a relatively calm backdrop for the broader market. The S&P 500‘s level rose 0.1% in the daily session, and the Nasdaq Composite closed out the day up 0.2%.
Image source: Getty Images.
Poet’s crash today crushed last week’s gains
Poet Technologies stock roared higher last week on news that the optics-tech specialist had secured a major new contract expansion. In an interview with Stocktwits, Poet CFO Thomas Mika seemingly confirmed that his company had landed an expanded contract with Celestial AI — a company that had been acquired by Marvell in February. Mika’s comments suggested that the order amount was now above the $5 million level that previously been more opaquely disclosed in an earlier announcement, but huge gains for Poet stock were erased following news Marvell had moved to cancel the order.
Poet Technologies
Today’s Change
(-47.35%) $-7.15
Current Price
$7.95
Is Poet stock a buy on the pullback?
Poet stock’s incredible volatility over the last week reflects just how speculative the company’s outlook is, and the evaporation of the expected order connected to Marvell is a sign that most investors should stay away from the stock right now. While the demand for optics technologies to support the buildout of artificial intelligence (AI) data centers remains very promising, uncertainty surrounding Poet’s outlook suggests that the stock’s risk-reward profile looks disadvantageous right now.
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.
