Poet Technologies (POET +2.63%) stock is getting hit with another day of big sell-offs in Wednesday's trading. The optics-technology company's share price was down 18.4% as of 12:30 p.m. ET.
While there doesn't appear to be any major new business-specific news for the company today, investors are continuing to react to recent news that Marvell had canceled an order for artificial intelligence (AI) fiber-optics tech with Poet. Gains for the stock across 2026 have now been cut to just 3.5%, and its share price is now down roughly 57% from its high.
Image source: Getty Images.
On April 27, Poet published a press release announcing that Marvell had moved to cancel an order through the company. The purchase had actually been set up by Celestial AI — a company that Marvell completed its acquisition of in February.
The previous week, Poet CFO Thomas Mika had said that the company had secured a purchase order through Marvell — and the news caused the optics specialist's share price to skyrocket. Unfortunately for Poet, Marvell submitted a notice to the company on April 23 announcing that it was canceling the order in response to disclosures of information that violated confidentiality agreements that were part of the deal.
With its update on the Marvell deal, Poet said that the company had a purchase order with another technology company that is valued at approximately $5 million. On the heels of dramatic volatility over the last week, Poet's market capitalization currently sits at roughly $1 billion.
The company has yet to generate significant revenue, but closed out its last reported quarter with cash and equivalents totaling roughly $430 million. With Poet losing its deal with Marvell, the company's near-term commercialization outlook appears significantly weaker than it was last week — but the business may still have plenty of opportunities to overcome the setback.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology. The Motley Fool has a disclosure policy.
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Poet stock has seen incredible levels of volatility as investors react to news about the company's order outlook.
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