Why Core Labs Stock Fell 12% in Early Trading Today
Shares of energy services provider Core Laboratories (NYSE: CLB) fell just over 12% in early trading on Tuesday. So far in 2020, the stock is off by around 50%, which is actually a vast improvement given that it was down in the 80% range at the worst of the bear market in March. The big-picture story here hasn't really changed that much.
Core Labs provides services that allow exploration and production (E&P) companies to increase their output. It's largely a data analysis business, which sets the company apart from other drilling services providers that have to invest heavily in equipment like multimillion-dollar drilling rigs. But that doesn't change the fact that Core Labs' customers are E&P companies that make investment decisions based on the price of oil and natural gas. When prices are high, more money goes into capital investments. When the energy sector is in a trough, like it is today, capital investments are curtailed, often materially.
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Source Fool.com
