Why Astera Labs (ALAB) Crashed Last Week?

We recently published a list of These Were Last Week’s 10 Worst Performers. In this article, we are going to take a look at where Astera Labs, Inc. (NASDAQ:ALAB) stands against other last week’s worst performers.

Ten companies posted double-digit declines last week amid a series of dismal earnings performance and outlook guidance that weighed down on investor sentiment, bucking an overall strength of Wall Street’s main indices on a week’s basis.

Over the past five trading days, the Dow Jones registered growth of 0.5 percent, the S&P 500 increased by 1.47 percent, and the tech-heavy Nasdaq rallied by 2.57 percent.

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

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Astera Labs, Inc. (NASDAQ:ALAB)

Astera Labs, Inc. (NASDAQ:ALAB) suffered a 13-percent drop week-on-week, ending Friday at $87.85 apiece versus the $101.29 registered on February 7, as investors sold off positions following the release of mixed earnings performance in 2024.

On Monday, February 10, Astera Labs (NASDAQ:ALAB) announced that its net income for the fourth quarter of 2024 jumped by 72 percent to $24.7 million from $14.3 million in the same period a year earlier, as revenues expanded 179 percent to $141 million from the $50 million in the same comparable period.

However, the fourth quarter’s figures fell short of pulling the company out of losses, having widened its net losses by a whopping 217 percent to $83.4 million in full-year 2024 from the $26.26 million registered in 2023.

But this year is expected to be “a breakout year.” According to ALAB CEO Jitendra Mohan, the company is set to enter a new phase of growth driven by revenues from all of its products, including its flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.

Overall, ALAB ranks 10th on our list of last week’s worst performers. While we acknowledge the potential of ALAB 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 time frame. If you are looking for an AI stock that is more promising than ALAB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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