Shares of Fluidigm (NASDAQ: FLDM) fell more than 54% on Wednesday after the company reported third-quarter 2019 operating results. The lab instrument developer, supposedly in the midst of a growth spurt, reported that revenue declined compared with the year-ago period. Worse yet, the segment leading its growth trajectory saw declining sales as well.
The disappointing results shocked investors -- and for good reason. While the year-over-year decline in revenue serves as a reminder of the difficulty in building a successful lab instrument business, it also suggests that Fluidigm may be losing out to a rising tide of competition. Could that prove to be an existential threat to the company?
As of 10:31 a.m. EST today, the small-cap stock had settled to a 51.1% loss.