Why Is POET Technologies Stock Down Today?

POET Technologies (POET) stock plummeted on Monday after the opto-electronic solutions company announced the cancellation of a purchase order from Marvell (MRVL). According to the company, Marvell’s Celestial AI canceled its order after POET Technologies publicly disclosed the order despite confidentiality obligations.

The Marvell and Celestial AI purchase order news resulted in extreme volatility for POET Technologies stock last week. This was due to the company’s Chief Financial Officer revealing it in an interview. The initial news sent shares of POET stock higher. This was followed by a strong drop the next day as investors sold POET stock for profits. However, the shares rebounded on Friday to close out last week in the green.

With news of the canceled Marvell and Celestial AI purchase order, POET Technologies took time to assure investors of its other business deals. This included a $5 million deal with another technology company. The company also stated that it “remains focused on executing its strategic priorities and advancing product development within the AI and optical networking markets to meet increasing demand.”

POET Technologies Stock Movement Today

POET Technologies stock was down 45.3% on Monday but was still up 27.8% year-to-date. The stock has also rallied 250.35% over the past 12 months.

With today’s news came heavy trading of POET stock, as some 94 million shares changed hands. For comparison, the company’s three-month average daily trading volume was about 10.52 million shares.

Is POET Technologies Stock a Buy, Sell, or Hold?

Turning to Wall Street, traditional analyst coverage of POET Technologies is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates POET stock as Neutral with a $15.50 price target. It cites “weak financial performance: very large ongoing losses, negative cash flow, and negative returns despite improving revenue growth” as reasons for this stance.