CGNX - Here's Why Cognex Stock Crashed in October
2023-11-04 10:58:14 ET
Shares in machine vision company Cognex Corporation (NASDAQ: CGNX) declined 15.2% in October, according to data provided by S&P Global Market Intelligence . The move comes as the company's end markets continued to weaken. This was confirmed by the disappointing third-quarter earnings report released at the end of the month. Revenue declined 6% year over year in the quarter, and CEO Robert Willett spoke of a "challenging operating environment" on the earnings call .
Cognex's main end markets are consumer electronics, logistics, and automotives. Customers typically pick up orders from Cognex when they are expanding production or, in the case of logistics, their deliveries. By way of example, Apple is a relatively significant customer, and Amazon.com is also believed to be a customer.
Unfortunately, the slowdown in consumer spending is causing consumer electronics companies to hold back investment in new models. Meanwhile, e-commerce warehouse spending is on pause this year due to the consumer spending slowdown and a natural correction from a few years of torrid growth driven by e-commerce-related expenditure caused by the lockdowns.
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Here's Why Cognex Stock Crashed in October