Coherent’s Shares Plunge 1.38% as Laser Divestiture and Revenue Woes Sink Trading Volume to 262nd

Coherent (COHR) fell 1.38% on August 20, with a trading volume of $0.40 billion, ranking 262nd in market activity. The decline reflects ongoing investor concerns tied to the company’s recent business adjustments and earnings outlook.

The stock’s underperformance stems from Coherent’s decision to divest its laser business and a downward revenue revision for the fiscal first quarter. The firm guided for $1.53 billion in revenue, below the $1.55 billion analyst consensus, raising questions about its growth trajectory. Analysts highlighted the strategic shift as a key factor, noting the move could streamline operations but may also limit near-term revenue visibility.

Jim Cramer and institutional investors, including Fidelity Investments, have expressed cautious views. Fidelity acknowledged Coherent’s potential in AI-driven data center markets but emphasized its exposure to competitive risks and sector volatility. The stock has lost 10% year-to-date, with a sharp 19.6% drop in August following the earnings report.

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