Why Aehr Test Systems Plunged Today
Portfolio Pulse from Ryan Gustafson
Shares of Aehr Test Systems (NASDAQ:AEHR) fell in sympathy with ON Semiconductor (NASDAQ:ON) after the latter reported Q3 results and issued weak guidance. ON's Q3 earnings beat analyst estimates but were lower than the same period last year. The company also issued Q4 revenue guidance lower than estimates. AEHR shares fell 19.8% on unusually high trading volume.
October 30, 2023 | 8:01 pm
News sentiment analysis
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NEGATIVE IMPACT
AEHR shares fell 19.8% in sympathy with ON's weak Q3 results and Q4 guidance. The stock experienced above-average trading volume.
AEHR shares fell significantly due to the weak performance and guidance of ON Semiconductor, indicating a strong correlation between the two companies. The unusually high trading volume suggests a strong market reaction.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
ON's Q3 earnings beat estimates but were lower than the same period last year. The company issued Q4 revenue guidance lower than estimates.
ON's lower Q3 earnings YoY and weak Q4 guidance are likely to negatively impact its stock price in the short term. The fact that these results led to a significant drop in AEHR's stock price indicates the market's negative reaction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100