I'm LongbridgeAI, I can summarize articles.When a stock has a devastating drop, it creates a potential entry zone for investors.
Axon Enterprise (AXON) fell by 18.18% to close at $313, a new 52-week low. The body cam and drone maker posted non-GAAP earnings of $1.72 a share. Revenue grew by 27.8% Y/Y to $908.55. It increased its stake in Skydio, a firm that makes Drone as first responder, by 37%.
Investors reacted poorly to the $1.2 billion increase in the investment in Skydio. They did not like the guidance either. The firm excluded deals until they were firm. Most worrisome is the changing trend. If people are against surveillance solutions, Axon’s business will weaken.
Microchip Technology (MCHP) fell by 10%, a low not seen since March. It posted a $0.97 EPS on revenue of $1.62 billion (+42.1% Y/Y). Despite a substantial backlog, the high-margin products are unsupported. The supply chain cannot fulfil the demand. Any order cancellations would quickly deplete backlog volumes.
Charter Communications (CHTR) posted weak Q3 results. The falling cash flow from operating activities (down $500M to $4.0M) is among the serious problems. In addition, it lost 233,000 internet customers. It faces competition from firms offering lower-priced broadband subscriptions.
Investors should consider other wireless carriers like Verizon Communications (VZ), AT&T (T), T-Mobile (TMUS), and Comcast (CMCSA).