POET Technologies Shares Plummet After Contract Loss

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 1 hour ago

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POET+2.67%

Should l Buy POET?

Source: seekingalpha

Contract Loss Impact: POET Technologies' stock plummeted nearly 50% on Monday following the termination of its contract with Celestial AI, significantly damaging the company's commercial momentum after a prior surge driven by excitement over its AI photonics solutions.
Severe Market Reaction: Over 80 million shares were traded during the crash, compared to an average of 10 million, indicating panic among investors and potential short-term bottom formation, reflecting heightened uncertainty about the company's future.
Increased Legal Risks: Analysts noted that the disclosure of confidential information by POET's CFO led to the loss of a key order from Marvell, severely damaging credibility with Tier-1 partners and jeopardizing future contract negotiations.
Deteriorating Investor Sentiment: Despite a strong cash position post-offering, analysts believe market projections for POET's growth are overly optimistic, expecting continued pressure on the stock price and recommending that investors avoid purchasing POET shares.

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Analyst Views on POET

About POET

POET Technologies Inc. is a design and development company. It offers high-speed optical engines, light source products and custom optical modules to the artificial intelligence (AI) systems market and to hyperscale data centers. Its photonic integration solutions are based on the POET Optical Interposer, a novel, patented platform that allows the integration of electronic and photonic devices into a single chip using wafer-level semiconductor manufacturing techniques. Its Optical Interposer-based products consume less power than comparable products, are smaller in size and are readily scalable to high production volumes. In addition, it has designed and produced novel light source products for chip-to-chip data communication within and between AI servers, the next frontier for solving bandwidth and latency problems in AI systems. Its Optical Interposer platform solves device integration challenges across a range of communication, computing and sensing applications.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Defiance ETFs Launches POET 2X Long ETF for Active Traders

1 day agoNewsfilter

New ETF Launch: Defiance ETFs has announced the launch of the Defiance Daily Target 2X Long POET ETF (POEL), designed to provide active traders with a new investment tool aimed at amplifying returns, particularly for short-term bullish strategies on POET Technologies Inc.
Clear Investment Objective: The fund seeks to achieve 200% of the daily percentage change in the share price of POET Technologies Inc., allowing investors to express tactical bullish views within the transparent framework of an exchange-traded fund, enhancing investment flexibility.
Strong Technical Background: POET Technologies Inc. focuses on photonic integrated packaging solutions, utilizing advanced semiconductor manufacturing techniques to support high-performance applications in artificial intelligence infrastructure and data communications, highlighting its significant position in the rapidly evolving semiconductor industry.
Clear Risk Warnings: The fund is not suitable for all investors, particularly those who do not intend to actively manage their portfolios, as its leveraged strategy may lead to significant principal losses, necessitating a thorough understanding of the associated risks.