NETGEAR Shares Decline By 11% Over Supply Disruptions Due To Covid

NETGEAR shares decline by 11% over supply disruptions due to Covid

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Following the release of the company’s preliminary financial results for the first quarter, NETGEAR (NTGR) stock plunged more than 11% after hours. The business cut its Q1 revenue forecast from $230 million to roughly $210 million. The current Street estimate for the project is $251.2 million.

The downturn in the U.S. consumer WiFi market in Q1 had a negative influence on the company’s CHP business.

While SMB revenue surpassed expectations, COVID-induced lockdowns in Shenzhen disrupted the delivery of components to the company’s plants in March, resulting in a significant missed opportunity to provide increased SMB revenue.

Gogoro Inc, a Taiwanese electric scooter manufacturer, now has all of the chips it requires, but it may run out by the end of the year as it pursues ambitious growth ambitions in India, China, and Southeast Asia, according to founder and CEO Horace Luke.

While automakers have been hit by a global shortage of semiconductors, the company utilizes significantly fewer chips than electric carmakers and still has a limited market confined in Taiwan.

The rate at which cities like Delhi, Jakarta, and other major markets grow would, of course, put a strain on our supply chain management. But they are issues that will arise later in the year rather than in the near future.

Gogoro has the electric battery and other agreements with vehicle manufacturers such as India’s Hero MotoCorp and China’s Yadea Group Holdings, in addition to producing its own vehicles.

Taiwan accounts for over 90% of Gogoro’s revenue, thanks to its green-hued battery swap distribution network for riders.

Price increases for raw materials like nickel have hurt electric vehicle makers, owing to supply chain problems caused by the Ukraine conflict, and Luke claimed some minor price increases had been passed on to customers.

Gogoro was optimistic about his expansion plans in countries like China, India, and Indonesia, where scooters are popular among consumers, with millions sold each year. 

Due to a recent increase in COVID-19, U.S. health officials have extended the regulation mandating travelers to wear masks on flights or transportation hubs until May 3.

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