Luminar Technologies (NASDAQ:LAZR) dropped Wednesday, after the company downgraded by Goldman Sachs to sell from neutral. The Wall Street firm cited margin risk and a premium valuation for the call.
Luminar was in the news Monday when it was reported that the company has replaced a YouTube video that included an image of a chip belonging to a competitor. The company has also replaced an image of the chip with its own Luminar semiconductor photonics integrated circuit specific to the investor presentation,
The issue was made public when Israeli startup Lidwave threatened legal action over the chip image that it said was its own design. On its website, Lidwave says its disruptive sensor uses patented technology that unlocks the full potential of 3D sensing making it accessible to new markets.
In response to the accusation, a Luminar spokesperson said the chip image was inconsequential to the overall presentation to investors that was part of a broad Luminar business update on February 28.
Luminar last reported quarterly financial figures on March 1, at which time it revealed Q4 Non-GAAP EPS of -$0.26, which missed by six cents per share.
LAZR shares retreated 93 cents, or 12%, to $6.80.
