During a down day for tech stocks, some names across the industry were getting especially crunched after delivering disappointing earnings reports.
“We’re nervous about Infinera,” wrote Jefferies analyst George Notter of a quarter in which he saw “big red flags.” The company missed Wall Street’s revenue expectations by about 6% while reporting a narrower loss than analysts had expected. Peer Applied Optoelectronics delivered a downbeat outlook for the quarter and saw its stock drop as well on Thursday. Needham analyst Alex Henderson sees a “long road ahead” for the company and commented that management seems to have low visibility into the second half of the year.
“Etsy delivered another quarter of [gross merchandise sales] growth above expectations and saw a strong finish to the quarter despite weakness in January to February, but investors were looking for more from results and full year guidance,” wrote Wedbush’s Ygal Arounian. “Investors are looking for a path to continued acceleration of GMS growth and may not be seeing it here with comps getting increasingly difficult, a challenging scenario for shares trading at a premium.