Corning Stock Slumps on Apple iPhone Cancellation
Corning's stock has been experiencing volatility due to reports that Apple has scrapped plans for an all-glass 20th-anniversary iPhone. This product had been seen as a significant revenue driver for Corning, which supplies glass components to various industries including displays and autos. The news is particularly concerning given Corning's earlier soft third-quarter revenue guidance, despite beating adjusted earnings expectations recently.
While analysts note that Corning's improving profit margins and stronger cash generation provide the company with more room to invest in new technologies, expand its optical business, and navigate industry ups and downs, the stock still carries notable risks. Its earnings are highly sensitive to cyclical markets like displays and autos, and its capital-heavy growth bets in areas such as photonics and solar could backfire if customer adoption arrives later than expected.
Corning's market cap stands at $143 billion, with a current YTD price performance of 98.50%. The company's average trading volume is around 14,296,135 shares per day.