Why Poet Technologies Stock Just Crashed

Poet Technologies (NASDAQ: POET) banal imploded this morning, falling 44% done 11:15 a.m. connected reports of a feud betwixt the tiny semiconductor packaging specializer and semiconductor elephantine Marvell Technology (NASDAQ: MRVL).

Poet has developed exertion to usage photonics (light) alternatively than copper wires to rapidly transportation information among artificial quality chips, and astatine first, it seemed to drawback Marvell's attention. Last week, Poet scored a large triumph erstwhile quality began filtering retired astir a large acquisition bid from Celestial AI, a institution Marvell acquired successful February.

But Poet spoke excessively soon.

Marvell is not blessed astir its acquisition bid being made public, and is accusing Poet of violating confidentiality obligations by publically disclosing Celestial AI's purchase.

Result: As Poet revealed this morning, "all acquisition orders received by [Poet] from Celestial AI, including the ones for archetypal accumulation units archetypal disclosed ... by the Company successful a property merchandise connected April 25, 2023" person present been canceled.

Now, alternatively of being capable to boast astir (and nett from) a large merchantability to a marquee customer, Poet is watching its bid publication vaporize.

So is this the extremity for Poet? Management insists each is well, arsenic it inactive has a "recently disclosed acquisition bid with different exertion institution with a worth of astir $5 million" -- 5 times the $1 cardinal successful income it made past twelvemonth -- but investors don't look convinced.

Whiz-bang exertion oregon not, Poet's been losing wealth for 20 consecutive years. Wall Street analysts expect it to support on losing wealth arsenic acold retired arsenic anyone's making estimates (i.e., 2027). Poet truly needed this merchantability to commencement changing its story, but present the merchantability seems retired of reach.

And Poet's got nary 1 to blasted for it but itself.

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