Why Cogent (CCOI) Shares Are Falling Today

Core Insights - Cogent Communications' shares fell 28.5% following disappointing Q3 results, with revenue of $241.9 million, a 5.9% year-on-year decline, missing Wall Street forecasts [1] - The company's GAAP loss of $0.87 per share was narrower than expected, but the weak revenue overshadowed this [1] - Cogent also missed expectations for Adjusted EBITDA, raising concerns about its near-term business outlook [1] Market Reaction - The stock has shown significant volatility, with 16 moves greater than 5% in the past year, indicating a strong market reaction to recent news [3] - The recent drop is part of a larger trend, with Cogent's shares down 66.8% year-to-date and trading 70% below its 52-week high of $85.35 [5] Historical Context - The previous notable stock movement occurred 27 days prior, when the stock dropped 3.4% due to trade war fears related to tariffs on Chinese imports, impacting the tech sector significantly [4] - Investors who purchased $1,000 worth of Cogent shares five years ago would now see their investment valued at $473.66 [5]