2024-01-31 07:30:00 ET
Summary
- Calix stock dropped 25.7% after reporting strong financial results for Q4 2023 but providing soft guidance for the 2024 fiscal year.
- Calix specializes in providing services to smaller broadband service providers and has seen significant revenue growth in recent years, but near-term growth will be challenged.
- The company expects growth to pick up in 2025 due to regulatory stimulus, but CALX stock is currently not attractively priced to jump in.
Growth oriented investing can prove to be incredibly profitable. But it also brings with it significant risks. Even when the long-term picture free business might look upbeat, shares can experience tremendous downside because growth prospects are not as appealing as the market might have anticipated. I could point to a long list of examples that we could look at one by one. But the most recent one that investors should be aware of involves a company called Calix (CALX). With a market capitalization of only $2.17 billion as of this writing, Calix is a fairly small institution. After reporting financial results that exceeded expectations for the final quarter of the 2023 fiscal year, results that came out on January 29th, you would think that the stock would have experienced meaningful upside. But instead, shares tanked, dropping 25.7% for the day....
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Calix Stock Plunges On Soft Guidance, But Don't Get Excited Just Yet