What happened
Shares of Inseego (INSG 5.90%) were falling for the second day in a row today as investors continued to react to several potential headwinds concerning 5G stocks. The stock was down as much as 11.7% earlier this morning but recovered some of those losses and were trading down 4.4% as of 12:07 p.m. EST.
So what
Yesterday's losses seemed to be prompted by comments from Apple in its earnings call that its rollout of a 5G phone would be slower than expected. Additionally, Xilinx shares tumbled yesterday as the chip-maker also warned on 5G deployments, with CEO Victor Peng noting a "slowdown in 5G rollout across multiple regions as many operators take a pause before the next wave of infrastructure deployment."
Image source: Getty Images.
Elsewhere, news that the U.K. will allow Huawei's 5G networking equipment seemed to add to the political challenges surrounding the global 5G rollout.
There was no specific news out today, but the momentum from yesterday's sell-off on those issues seemed to carry over.
Now what
Inseego stock is still up sharply over the last few months, meaning that this two-day pullback may also be a reflection of the stock having run up too far too fast. Investors should also remember that 5G technology is still only a sliver of the company's business as it is expected to bring at least $10 million in 5G-related revenue compared to total revenue of about $170 million for 2019. Nonetheless, the rebound from its losses earlier this morning seems to indicate that the market has fully digested the news.
