Revenue forecasts are a critical indicator of a company's future performance and financial health. When a company like Fox Factory Holdings projects revenue that is significantly below market estimates, it often leads to negative investor sentiment and can cause the stock price to drop in the short term. This is because lower-than-expected revenue can signal underlying issues such as decreased demand for the company's products, increased competition, or operational challenges. Investors and analysts closely watch these forecasts to adjust their expectations and investment decisions accordingly.