Viasat Inc. (VSAT) Shares Plunge 10.32% on Earnings Miss

Viasat Inc. (VSAT) shares plummeted 10.32% intraday, marking the lowest level since January 2025. The stock has been on a downward spiral, declining 7.56% today and 25.10% over the past four days.

Viasat's recent stock price decline can be attributed to several factors. The company's fourth-quarter earnings report, released on February 22, 2025, showed a net loss of $10.7 million, or $0.09 per share, compared to a net income of $1.3 million, or $0.01 per share, in the same period last year. This significant drop in earnings has raised concerns among investors about the company's financial health and future prospects.

Additionally, Viasat's decision to sell its fixed broadband business to Lumen Technologies for $7.3 billion has also contributed to the stock's decline. While the sale is expected to generate significant cash for the company, it has raised questions about Viasat's long-term strategy and its ability to compete in the satellite communications market. Some investors may be concerned that the sale of the fixed broadband business could limit Viasat's growth potential and make it more vulnerable to competition from other satellite communications providers.

Furthermore, the recent sale of 4970 shares of Viasat by Corebridge Financial Inc. during the fourth quarter has also had a negative impact on the stock price. This sale, which was part of a larger divestment by the company, has raised concerns among investors about the company's future prospects and its ability to attract and retain institutional investors. While the sale of shares by a large institutional investor is not uncommon, it can still have a significant impact on the stock price, especially in a volatile market.

In conclusion, Viasat's recent stock price decline can be attributed to a combination of factors, including disappointing earnings, strategic decisions, and institutional investor activity. While the company's long-term prospects remain uncertain, investors will be closely watching Viasat's next earnings report and any further developments in its strategic initiatives.