Why Fabrinet Shed Nearly A Quarter of Its Value This Week
Fabrinet trounced earnings expectations, but hopes for an even bigger beat and other macroeconomic factors weighed on shares.
Overview
Shares of chip and optical packaging giant Fabrinet (NYSE: FN) sank 23.4% this week, according to data from S&P Global Market Intelligence.
Fabrinet released its fiscal fourth quarter earnings report on Monday. While the numbers handily beat Wall Street analyst estimates and management guided ahead of consensus, the results apparently weren't enough for investors looking for an even bigger beat.
Details
Like many AI-related stocks, Fabrinet has already posted strong gains over the past year and trades at an expensive-looking valuation. Furthermore, other macroeconomic factors appeared to weigh on AI-related semiconductor stocks this week.
Source
Originally published at www.fool.com.