ENVX - Why Enovix Stock Plunged Today
Shares of battery company Enovix (NASDAQ: ENVX) dropped as much as 44.4% in early trading on Wednesday after it reported third-quarter 2022 results. Shares are still trading down 40.2% on the day at 12:30 p.m. ET.
For the third quarter of 2022, revenue was $8,000 (you read that right) and net loss was $82 million, or $0.53 per share. Management said it expects revenue for 2022 to be between $6 million and $8 million, primarily from service revenue.
Investors weren't expecting a profit in 2022 and revenue guidance is in line with expectations, but they weren't expecting an announcement the company will put more effort into Gen2 technology over improving Gen1 technology. This likely means that revenue scaling will take longer than expected.
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Why Enovix Stock Plunged Today