What happened

Shares of HIMAX TECHNOLOGIES (NASDAQ:HIMX) fell 19.1% in September, according to data provided by S&P Global Market Intelligence, primarily due to a negative analyst note toward the end of the month.

So what

Specifically, Himax plunged nearly 20% on Sept. 26, 2016, after Nomura analyst Donnie Teng reduced his rating on Himax to "neutral" from "buy." Teng also reduced his price target on Himax shares to $10.20 from $12, citing channel checks that indicated weak shipments for a major augmented reality device -- an obvious reference to Microsoft's HoloLens headset, for which Himax is a key component supplier. Teng further suggested HoloLens may not see shipments ramp until the second half of next year.

As I pointed out at the time of the downgrade, Teng's downgrade came less than three months after he upgraded Himax stock based on HoloLens' potential to "bring a meaningful contribution to Himax" -- though he also admitted the augmented reality industry could have a "bumpy" start with low volume shipments in its early stages.

Now what

Though it might be tempting to dismiss Teng's opinion considering the short amount of time between his disparate calls, he's not alone in this mindset.

Incidentally, as of this writing Himax stock is down 3.7% in Tuesday's trading as Northland Capital Markets analyst Tom Sepenzis maintained his "outperform" rating and $12-per-share price target, but -- you guessed it -- warned of an impending drop in revenue from HoloLens as Microsoft refines the device. As such, Sepenzis similarly predicted Himax has "little chance of a positive catalyst until the second half of [calendar year 2017]."

The market hates being told to "hurry up and wait" before it can realize the fruits of these exciting early stage industries. So while Himax's long-term story appears to remain intact, it's no surprise to see short-term oriented investors taking yet another step back from the stock on Tuesday.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.