Shares of Tuya (TUYA -0.94%), an Internet-of-Things platform company, fell this morning after the company reported its second-quarter results.
The tech stock was down by 19.9% as of 10:30 a.m. EDT.
Tuya's sales in the second quarter skyrocketed 118% to $84.7 million, which outpaced Wall Street's consensus estimate of $78 million.
The company's adjusted net loss per American depositary share of $0.04 matched analysts' consensus estimate for the second quarter. So why did investors drive Tuya's stock price down today?
Investors were likely disappointed with the fact that the revenue outlook for the third quarter set by Tuya's management was between $83 million and $86 million, which is far below analysts' consensus estimate of $93.4 million for the quarter.
Tuya went public back in March and since then the company's stock has been extremely volatile. With today's share price drop, Tuya's stock is down 52% since its IPO.
Investors may want to be cautious about investing in Tuya right now. In addition to the company's own share price swings, many China-based technology companies are experiencing share price volatility right now as the Chinese government implements increasing restrictions on how Chinese tech companies operate in the country.