What happened

Shares of Energous Corporation (WATT -13.13%) fell 20.6% in October, according to data from S&P Global Market Intelligence, after both the broader market's decline and the wireless charging technology specialist's latest quarterly report.

On the former, note most market indexes pulled back hard from all-time highs at the start of last month, with the tech sector leading all decliners for several sessions. But Energous stock also fell nearly 9% on Oct. 31, 2018, alone -- the first trading day after the company posted third-quarter 2018 results.

Contemporary living room with green wireless charging icons above each of its electronic devices.


So what

That's not to say Energous' results were bad. The company reported modest quarterly revenue of $228,000, which translated to a net loss of $12.6 million, or $0.49 per share. Both figures were roughly in line with consensus expectations. What's more, Energous management noted the company has secured regulatory approval for its WattUp wireless charging technology in 100 countries.

"Our customers are bringing WattUp-enabled devices to market as we continue to secure regulatory certifications in some of the most important markets across the globe," added Energous CEO Stephen Rizzone. "We are steadily moving forward in the build out of a WattUp-enabled ecosystem by working closely with our existing partners and customers, as well as potential new prospects, to launch next generation wireless charging electronic devices."

Even so, Wall Street's reaction to the report was mixed. On one hand, Roth Capital analyst William Gibson reiterated his "buy" rating and $24.50-per-share price target on the stock, arguing that small form-factor markets should "be significant revenue contributors in 2019."

On the other hand, Ladenburg Thalmann's Jon Hickman simultaneously downgraded Energous to "neutral" and reduced his price target to $8 from $24. To justify his relative bearishness, Hickman suggested a "more modest valuation outlook" is merited considering the revenue ramp in 2019 will be slower than he originally anticipated.

Now what

If one thing seems clear, it's that Energous holds great potential as a leader in the next-generation wireless charging space. But our market hates being effectively told to hurry up and wait, leaving the stock susceptible to the broader market's volatility in the meantime. So while I think Energous could still deliver exceptional gains for patient investors, it's no surprise to see it pulling back in the short term.