A week ago, a prominent Avigilon investor admitted, "Nobody wants to hold [Avigilon stock]. Everybody wants to sell it." He then recommended buying it.
He evidently was right, at least partially.
In the past week, Avigilon's stock has dropped another 20% and is now down nearly 60% from its high earlier this year.
Avigilon's market valuation is down over $900 million since then.
[Update October 10th - Avigilon stock ended the week at a new low: $13.90 per share.]
From speaking to investors and analysts covering Avigilon, here are the main reasons they are offering for the fall:
- Lack of confidence in CEO
- Issues with management team
- Problems in hiring / scaling
- Low cost competition increasing
- Competitor products catching up
- Accounting irregularities
- Growth rate sharp decline
Inside, we provide our analysis on how accurate we believe each reason is.