NPTN - Why Some Optical Networking Stocks Crashed Last Month
Shares of several optical networking component makers fell hard in January 2020, according to data from S&P Global Market Intelligence. Fiber lasers maker IPG Photonics (NASDAQ: IPGP) fell 11.9%, optoelectronic modules builder NeoPhotonics (NYSE: NPTN) dropped 13.5%, and laser systems specialist Coherent (NASDAQ: COHR) lost 15% of its market value. Apart from operating in the optical networking sector, these three companies also share a significant business presence in China, which exposed them and their investors to uncertainty around the coronavirus breakout.
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All three of these optical networking stocks were doing just fine in January until the virus scare kicked off. All of them were also quick to fall by double-digit percentages due to their sizable business interests in China.