Glass-maker Corning shares plunge 20% on lower sales forecast
Shares of glass-maker Corning fell 20% to as much as $114.50 on Tuesday after the company reported slower growth in fiber optics and forecast a
Shares of glass-maker Corning fell 20% to as much as $114.50 on Tuesday after the company reported slower growth in fiber optics and forecast a lower Q3 sales as against the expectations of market experts, according to Reuters report.The fall wiped out more than $23 billion in market value of the company.Although Corning beat second-quarter Wall Street expectations for both earnings and revenue, its forward-looking guidance underwhelmed investors.The company projected third-quarter core sales of $4.9 billion to $5.0 billion, falling slightly short of analyst forecasts.Investors noted a subtle deceleration in the company's vital optical communications segment, which grew 32% in Q2 compared to 36% in the prior quarter.
This raised fears of a near-term slowdown in capital expenditures from major wireless carriers.Corning's stock had more than doubled over the past year due to heavy artificial intelligence infrastructure hype. This rapid surge led analysts to warn of an unsustainable and
"onerous" valuation, leading to a pullback.The stock has fallen approximately 12.7% in the last 3 months, risen over 65% in 6 months and surged up to 176% in the last one year, followed by a pull back.Corning Incorporated is a major
American technology company that specializes in specialty glass, ceramics, and optical physics. Corning is famous for creating products like Gorilla Glass for mobile phones, optical fiber, and laboratory equipment.Before the July 28 crash, the company's market capitalisation stood at $126.21 billion.
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