Why Immersion Stock Plunged on Tuesday
Immersion's (NASDAQ: IMMR) stock price was down 7.6% at 11:03 a.m. EDT on Tuesday. The provider of haptics touch technology delivered stellar second-quarter earnings on Monday. Total revenue growth accelerated to 93% year over year, reaching $11 million. This is higher than the 14% growth in Q1 2021 and decline of 35% in the year-ago quarter.
Immersion is a small-cap stock with a market capitalization of just $204 million, so wild price swings can be normal after big news. However, the sell-off here looks puzzling, as the results look solid all around, and management even noted recent momentum with key customers of its touch technology.
Despite the accelerating growth, the stock is down 40% year to date, which trails the broader market, as measured by the NASDAQ Composite index.
Source Fool.com
