Luminar Technologies Stock Is Trading Lower Monday - What's Going On?
Portfolio Pulse from Anusuya Lahiri
Luminar Technologies, Inc. (NASDAQ:LAZR) is reducing its workforce by 20% and shifting towards an asset-light model to scale production, causing its stock to drop by as much as 13% on Monday. The restructuring includes a partnership with TPK Holding and aims to lower operating costs by $50 million-$65 million annually. Despite shipping lidar sensors to Volvo and a deeper partnership with TPK Holding, a BofA Securities analyst downgraded the stock due to weaker EV demand and a potential need to raise $1 billion in capital. LAZR stock has lost over 74% in the last 12 months. Investors can also gain exposure to LAZR through Direxion Moonshot Innovators ETF (NYSE:MOON) and First Trust Nasdaq Artificial Intelligence And Robotics ETF (NASDAQ:ROBT).
May 06, 2024 | 12:40 pm
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NEGATIVE IMPACT
Luminar Technologies is reducing its workforce by 20% and adopting an asset-light model, causing its stock to drop significantly.
The workforce reduction and strategic shift to an asset-light model are significant changes that typically lead to short-term negative market reactions due to uncertainties and the immediate financial impact of restructuring costs.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Direxion Moonshot Innovators ETF (MOON) includes LAZR in its portfolio, potentially impacting its performance.
Given that MOON includes LAZR in its portfolio, the negative performance of LAZR could adversely affect the overall performance of the ETF in the short term, depending on LAZR's weight within the ETF.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
First Trust Nasdaq Artificial Intelligence And Robotics ETF (ROBT) includes LAZR, potentially affecting its performance.
ROBT, which includes LAZR in its portfolio, might experience negative impacts on its performance due to the downturn in LAZR's stock, depending on the weight of LAZR within the ETF.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50