"Mobileye's Revenue Forecast Plummets Amid Auto-Chip Order Declines"
Originally Published 2 years ago — by MarketWatch
Mobileye Global Inc., a company specializing in self-driving technology, saw its stock plummet by approximately 25% after issuing a revenue warning due to excess inventory at its customers. The company expects a significant drop in first-quarter revenue, estimating it to be around 50% less than the previous year, contrary to analysts' expectations of an increase. This excess inventory of EyeQ products is a result of automotive suppliers stockpiling components during the pandemic and now reducing orders. Mobileye anticipates an operating loss for the first quarter and projects that revenue for the rest of 2024 will be roughly flat to slightly up compared to 2023, with inventory levels normalizing by the end of the year. Despite the setback, some analysts maintain a long-term positive outlook for the company.