Why Himax Technologies Stock Tanked Nearly 20% This Week
Shares of semiconductor design outfit Himax Technologies (NASDAQ: HIMX) took a steep 19.6% hit last week. It caps off a terrible June for the market, and the worst first half of a year since 1970. If you're keeping score, the S&P 500 was down 19.7%, the Nasdaq Composite was down 25.9%, and Himax stock was down 54.8% so far in 2022 through July 1.
Semiconductor businesses in particular are under siege right now, especially those like Himax that provide circuitry for consumer electronics. After two years of heavy spending on work-from-home and other at-home products, the global consumer is shifting its wallet toward more basic items as inflation rages.
In light of this, Himax updated its Q2 2022 financial guidance lower on June 20. Himax management now thinks revenue will decline 22% to 27% from Q1 2022, compared with previous guidance for a 16% to 20% sequential decline before. It appears it took a few days for the market to digest the news.
Source Fool.com
