What happened

Shares of Universal Display (NASDAQ:OLED) are down 12.5% as of 12:30 p.m. EST Monday amid a broader stock market plunge and growing concerns of tepid smartphone-industry demand.

On the former, note the S&P 500 is down more than 1.5%, while the tech-heavy NASDAQ Composite Index has lost around 2.5% as of this writing. 

Stock market numbers with a line chart indicating losses.


So what

More specifically on Universal Display's decline, one big driver of the market's drop today is Apple (NASDAQ:AAPL) -- down more than 4% after facial-recognition component supplier Lumentum (NASDAQ:LITE) lowered its outlook, citing a reduced shipment request from one of its largest customers. Considering Apple is shipping two new iPhones featuring OLED displays this year, Universal Display shares appear to be falling in sympathy.

Now what

To be fair, however, this news shouldn't be entirely surprising, as Universal Display only reduced its own full-year outlook just over a week ago. At the time, Universal Display management stated that while they expect 2019 to be "a meaningful year of growth," the "magnitude of the second-half [2018] pick-up" in OLED material sales simply wasn't happening as quickly as they originally anticipated. 

It likely doesn't help that Universal Display is still susceptible to downward momentum on the heels of that quarterly report. But in the end, with shares approaching their 52-week low and the company's long-term story still firmly intact, I think now is a great time for patient investors to open or add to their positions.

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.