In the last year, FMC Corporation (FMC) entered a downtrend. That attracted bearish investors, who hold a nearly 19% short interest in the agricultural sciences firm.
FMC lost around one-third of its value last week after lowering its outlook. In its Q3 outlook, FMC guided revenue of $65 million to $125 million. That is substantially lower than the previous outlook of $ 840 million to $ 900 million. It is projecting a charge of $625 million to $675 million related to price cuts on various products.
FMC stock will continue to trade at sale prices as its heavy debt burdens its balance sheet. If management cut its compensation, the stock might recover.
Dell Technologies (DELL) peaked at $595.51. The stock, however, traded in the $450 range amid an analyst downgrading shares. Barclays downgraded the supplier of PCs and servers to equal weight.
The pull-back in server suppliers spread to Super Micro Computer (SMCI), Lenovo (LNVGY), and Hewlett Packard Enterprise (HPE).
In the computer hardware sector, SanDisk (SNDK), Western Digital (WDC), and Seagate (STX) lost between 16% and 18% in the last week. Despite demand vastly outpacing supply, fears grew that AI sales would slow. Cisco Systems (CSCO), Lumentum (LITE), and CIENA (CIEN) gave up their monthly bounce.
Cisco and CIENA need to form an uptrend before investors consider either firm. Lumentum appears range-bound for now.
