In mid-week trading, investors will watch three stocks that cratered the day before. Two of them are in the optical networking space, while the third one is a big holder of Bitcoin (BTC-USD).
Lumentum (LITE) shares lost 8.2% on Tuesday. News from Applied Optoelectronics (AAOI) sent LITE stock down in sympathy. Coherent (COHR) shares also fell.
Semi Analysis posted a negative article on AAOI. It wrote that co-packaged optics will likely face delays. Writers based their analysis on conversations at Computex, held the week before in Taipei, Taiwan.
Shares of Marvell (MRVL), Arista (ANET), Ciena (CIEN), and Corning (GLW) also fell.
In the crypto space, Strategy (MSTR) lost 8% to close at $117. This is still above its 52-week low of $104.17. After selling just 32 Bitcoin to cover preferred share distributions, MSTR reversed course. It said on June 8 that it bought BTC.
The firm bought 1,550 BTC valued at $101.3 million. Strategy potentially benefited from Bitcoin rebounding from around $59,500 to up to $63,000. MSTR stock initially rallied alongside Nasdaq’s (QQQ) Monday rally.
Strategy’s risks are worsening. Whenever it needs to raise cash, it sells stock, which it then uses to buy volatile Bitcoin. It needs BTC prices to rise. Otherwise, investors might sell the stock and the preferred shares to avoid exposure to Bitcoin.
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