2024-07-26 08:00:00 ET
Summary
- ASML recently reported Q2 results, which were not bad, but showed that its sales were heavily reliant on China.
- ASML shares experienced a 20% drop since the release of the company's Q2 results, which shows the market was not at ease.
- The recent increase in US-China trade tensions creates additional risks for ASML, although the company itself does not mention this.
- Although the long term growth thesis for the company seems to be intact, these additional China risks cannot be ignored.
On July 17th, ASML ( ASML ) published its Q2 2024 financial results. Revenue came in at the high end of the company's guidance, and quarterly net bookings looked quite good at €5.6B, of which €2.5B was EUV (extreme ultraviolet, the company's flagship product). Also, the company's Q2 gross margin was at 51.5 percent, above guidance. Still, the company's shares dropped by more than 12 percent on that day, and the shares have continued their drop until today, where is it trading 20% off its recent all-time high....
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ASML: Q2 Results, China Risks And The Recent Drop