Why Navitas Stock Plummeted Today

Core Insights - Navitas Semiconductor experienced a significant stock sell-off, with a 22.7% decline in share price over the last week of trading [1] - The company's fourth-quarter earnings report was below market expectations, contributing to the stock's decline [2][3] - Broader macroeconomic concerns and Nvidia's Q4 results also negatively impacted Navitas' stock performance [5][6] Financial Performance - Navitas reported a loss per share of $0.21 on sales of$17.98 million for the fourth quarter, which was worse than the Wall Street analyst estimate of a loss of $0.14 on sales of$19.03 million [3] - Revenue for the fourth quarter decreased by 31% compared to the same period last year [3] - For the first quarter, Navitas expects sales to be between $13 million and$15 million, indicating an annual sales decline of approximately 39.6% at the midpoint of the guidance range [4] Market Context - The sell-off in Navitas' stock was exacerbated by a general trend of investors moving away from growth-dependent tech stocks due to new macroeconomic risks [2][5] - Nvidia's Q4 report raised concerns about potential impacts from new export restrictions on semiconductors, contributing to bearish sentiment in the AI and semiconductor sectors [6]