Why II-VI Stock Plunged Today
Shares of II-VI (NASDAQ: IIVI) have plunged today, down by 12% as of noon EDT, after broader markets tanked due to ongoing fears around the novel coronavirus outbreak. The COVID-19 respiratory illness continues to spread around the world, with economic risks mounting for companies across sectors.
Investors are worried that the outbreak could potentially lead to a global recession, and some tech companies face greater exposure because many of them have supply chains and operations concentrated in China. In II-VI's case, the maker of optoelectronic components and devices does have production facilities in China, as well as other countries that have been hit hard, such as Germany. II-VI also recently closed its acquisition of Finisar, which likewise has manufacturing operations in China, increasing II-VI's exposure even further.
More broadly, the steep plunge in crude oil prices is only adding to investors' unease.
Source Fool.com
