Why Universal Display Stock Fell 13% Today
Shares of Universal Display (NASDAQ: OLED) had another bad day on Wednesday. The technologist behind the organic light-emitting diodes (OLEDs) found in many mobile devices and high-end TV screens saw its share price close 12.8% lower on no particular news of its own.
Universal Display's stock has largely followed the broader market down over the last month, matching every drop and bounce of the S&P 500 with eerie precision as the coronavirus pandemic evolved. The stock did suffer a bit more than the broader market today as the S&P 500 ended Wednesday's trading session 5.1% lower.
A couple of developments in the OLED industry may have weighed on this stock today. Japanese imaging technologist Canon (NYSE: CAJ) announced that the company might produce and sell some OLED materials of its own. Canon is a leading maker of material deposition tools used in the manufacturing process for OLED screens, but has not entered the materials segment of this industry yet. Universal Display collected $243 million of material resales in 2019, up from $153 million the year before. If Canon aims to sell its OLED materials directly to screen builders, Universal Display could lose a significant chunk of annual revenue.
Source Fool.com
