Why did maxn stock go down on 2nd July?

Maxeon Solar Technologies, Ltd. (MAXN) experienced a decline in its stock price on July 2, 2024, due to several factors:

1. Class Action Lawsuit: Pomerantz LLP announced the filing of a class action lawsuit against Maxeon, which concerns potential securities fraud or other unlawful business practices. Such legal actions often lead to uncertainty and can negatively impact the stock price.
2. Financial Performance: Maxeon reported a 41% year-over-year decline in revenue to $187.5 million for the first quarter of 2024. The company also disclosed a serious cash flow challenge and was forced to negotiate commitments for significant liquidity support, which could result in substantial dilution to existing public shareholders.
3. Nasdaq Compliance: Maxeon received a notice of non-compliance from Nasdaq due to the failure to timely file its annual report for the fiscal year ended December 31, 2023. This non-compliance could have implications for the company's listing on the Nasdaq Capital Market.
4. Goldman Sachs Downgrade: Goldman Sachs adjusted its stance on Maxeon, downgrading the stock from Buy to Sell and significantly reducing the price target to $1 from the previous $11. This downgrade was likely influenced by Maxeon's recent financial disclosures, which showed a miss in gross margins and EBITDA against Goldman Sachs and Factset consensus expectations.

In summary, the decline in MAXN stock price on July 2, 2024, can be attributed to a combination of the class action lawsuit, financial performance concerns, Nasdaq compliance issues, and the downgrade by Goldman Sachs.