Here’s Why Lumentum Holdings Inc. (LITE) Crashed on Friday

We recently compiled a list of the 10 Companies Echo Friday’s Market Pessimism. In this article, we are going to take a look at where Lumentum Holdings Inc. (NASDAQ:LITE) stands against the other stocks.

Ten companies were hit hard on Friday as investors digested disappointing earnings performance and dismal outlook guidance for 2025.

The shares’ performance traded in line with Wall Street’s major indices, with the Dow Jones losing 0.99 percent, the S&P 500 falling 0.95 percent, and the tech-heavy Nasdaq diving 1.36 percent.

To come up with Friday’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a technician calibrating a laser beam.

Lumentum Holdings Inc. (NASDAQ:LITE)

Lumentum Holdings Inc. declined by 7.31 percent on Friday to end at $85.90 apiece as investors resorted to profit-taking following the company’s surge in the prior trading fueled by an impressive earnings performance for the second quarter of fiscal year 2025.

During the period, LITE said it was able to exceed its high-end guidance for both revenue and earnings per share driven by a strong demand in the cloud end market.

In the last quarter alone, net revenues increased by 9.65 percent to $402.2 million from the $366.8 million registered in the same period a year earlier, pushing net revenues for the first six months higher by 8 percent at $739.1 million from $684.4 million.

Given stronger revenues, LITE was able to narrow its net loss for the quarter by 38.5 percent to $60.9 million from $99.1 million.

Net loss for the first six months was also trimmed by 14.19 percent to $143.3 million from $167 million.

“With our strong market position and improving industry trends, we remain confident in achieving our previously stated goal of reaching $500 million in quarterly revenue by the end of calendar year 2025,” said LITE President and CEO Alan Lowe.

Overall LITE ranks 8th on our list of Friday’s worst performers. While we acknowledge the potential of LITE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LITE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.