Why Infinera Stock Dropped Today
Shares of Infinera (NASDAQ: INFN) have dropped today, down by 10% as of 12:30 p.m. EDT, amid a broad market sell-off over novel coronavirus fears and a precipitous plunge in oil prices. Investors are becoming increasingly concerned that the COVID-19 outbreak could cause a global recession, and tech companies with operations in China face greater exposure.
As the number of confirmed coronavirus cases continues to climb worldwide, the macroeconomic risks are mounting. Infinera uses four contract manufacturers to produce its optical networking equipment, with most of those facilities concentrated in Asia -- specifically, China, Malaysia, and Thailand. The company notes in regulatory filings that it is able to "redirect select manufacturing activities to U.S. qualified factories of three electronic manufacturing services partners."
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Source Fool.com
