Why Avid Technology Stock Crashed Today
Shares of Avid Technology (NASDAQ: AVID) were trading down by 20.6% at 2:36 p.m. ET on Thursday after the company delivered first-quarter results that were at the lower end of management's previous guidance. At that point in the session, the Nasdaq was down by 5.4%, largely on macro-economic concerns.
Overall, Avid Technology continues to see growing demand for its software and tools used for content creation in the music, film, and TV broadcasting industries. In Q1, its revenue grew 7% year over year to $100.6 million, which was in line with analysts' estimates. That was driven by strong growth in subscription revenue of 32% year over year.
However, shortages of key components for its audio solutions contributed to revenue being lighter than management had expected.
Source Fool.com
