Why Impinj's Shares Crashed Today
Shares of Impinj (NASDAQ: PI) kept sliding lower and lower, all day Thursday. The radio frequency identification (RFID) specialist's stock ended the day 13.3% lower.
Impinj didn't have any news of its own today, but the stock still plunged much faster than the broader market. The S&P 500 index fell 3.3% on coronavirus fears, for example.
This stock tends to amplify whatever trends might be moving the broader markets, often surging or falling much faster than the average stock. Impinj is currently unprofitable, and the stock is richly valued by pretty much any metric you choose. You can pick up shares at the princely valuation ratios of 538 times forward earnings estimates or 604 times trailing free cash flows, for example. More than 20% of Impinj's shares are currently sold short, making the stock even more sensitive to dramatic market swings.
Source Fool.com
