Why Astera Labs Is Sinking Today
Astera Labs stock is falling on the heels of the company's Q1 report yesterday.
Astera actually delivered substantial sales and earnings beats, but investors aren't thrilled with management's forward guidance.
The company's Q2 targets actually look pretty solid, and today's sell-off could be an overreaction.
10 stocks we like better than Astera Labs ›
Astera Labs (NASDAQ: ALAB) is heading lower Wednesday following the company's first-quarter earnings report yesterday. The connectivity tech specialist's share price was down 4.7% as of 12:20 p.m. ET. The stock had been down as much as 11.2% earlier in the day.
Astera published its Q1 results after the market closed yesterday and reported sales and earnings that topped Wall Street's expectations. On the other hand, it looks like investors weren't satisfied with the company's forward guidance.
Image source: Getty Images.
Astera Labs sinks despite very strong growth in Q1
Astera Labs reported non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.33 on sales of $159.4 million in Q1. For comparison, the average Wall Street analyst estimate had called for adjusted earnings of $0.28 per share on sales of roughly $151.5 million. The company's sales surged approximately 144% compared to the prior-year period.
What's next for Astera Labs?
For the second quarter, Astera is guiding for sales to come in between $170 million and $175 million. At the midpoint of the guidance range, that would mean delivering sequential quarterly growth of 8.5%. Meanwhile, management is targeting an adjusted gross margin of 74% for the period.
At the same time, adjusted earnings per share are expected to come in between $0.32 and $0.33 -- roughly in line with last quarter. With the company's gross margin projected to hold steady, the company's earnings guidance suggests a significant uptick in operating expenses.
While some investors may have been looking for stronger sales or earnings guidance for the current quarter, Astera's Q1 report and targets for Q2 actually look quite strong. If you're considering building a position in the stock, today's pullback on a strong earnings report could be a worthwhile buying opportunity.
Should you invest $1,000 in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
As Elon Musk, Mark Zuckerberg And Sam Altman Chase Nvidia AI Chips, Jensen Huang Says 'Just Call Me' — Here's How Allocation Really Works
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang revealed the company's straightforward chip allocation process during Wednesday's All In Podcast, dismissing concerns about favoritism among tech titans competing for scarce artificial intelligence processors. What Happened: When asked how he manages allocation requests from high-profile clients like Tesla Inc.'s (NASDAQ:TSLA) Elon Musk, Meta Platforms Inc.'s (NASDAQ:META) Mark Zuckerberg and OpenAI's Sam Altman, Huang offered a surprisingly simple answer: 'Place a PO. That's it.' Huang said that the company now discloses its roadmap to partners a year in advance for better planning. Trending: Be part of the breakthrough that could replace plastic as we know it— Huang addressed supply concerns by revealing he 'wrote off $5 billion worth of Hoppers,' adding, 'If anybody would like to have some extras, you got them. Just give me a call.' The allocation process has become critical as demand for NVIDIA's H100 AI chips intensifies. Current Hopper architecture GPUs maintain strong residual value, retaining 75-80% of their original value after one year and approximately 50% after three years. Responding to Musk's projection of deploying '50 million H100 equivalents' within five years, Huang described AI infrastructure as requiring 'factories of AI' that continuously produce tokens. He estimates the industry is 'a couple hundred billion dollars into a multi-trillion dollar infrastructure buildout per year.'Why It Matters: The chip shortage has intensified amid U.S. sanctions affecting Chinese customers. Chinese server maker H3C recently warned of depleted H20 chip inventory, with supply uncertainties extending beyond April. Major Chinese firms, including Alibaba Group Holding Ltd. (NYSE:BABA) and Tencent Holdings Ltd. (OTC:TCEHY) have increased H20 orders following DeepSeek's emergence in the AI market. Previous reports indicate the competitive dynamics at play. Oracle Corp.'s (NYSE:ORCL) Larry Ellison and Musk reportedly 'begged' Huang for additional GPUs during a dinner at Nobu Palo Alto, with Ellison stating they told the CEO to 'please take our money.' Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image via Shutterstock This article As Elon Musk, Mark Zuckerberg And Sam Altman Chase Nvidia AI Chips, Jensen Huang Says 'Just Call Me' — Here's How Allocation Really Works originally appeared on
Yahoo
25 minutes ago
- Yahoo
Ether Surges 4% as ETH Treasury Firm BitMine Steps Up Bid to Acquire 5% of Supply
Ether extended its rally Thursday after BitMine Immersion Technologies (BMNR) announced that its holdings of the second most valuable cryptocurrency had surpassed $2 billion — just 16 days after closing a $250 million private placement to support its Ether treasury strategy. In a press release dated July 24, the Nasdaq-listed bitcoin mining firm said it had acquired 566,776 ETH at an average price of $3,643.75. The milestone marks significant progress toward BitMine's stated goal of acquiring and staking 5% of the total ether supply in circulation. "At BitMine, we surpassed $2 billion in ETH holdings just sixteen days after closing our private placement," said Chairman Tom Lee, who is also the head of research at Fundstrat and the CIO of Fundstrat Capital. CEO Jonathan Bates added that the company aims to grow ETH-per-share performance through staking income, capital market activities and active treasury management. The firm's broader strategy combines direct ETH accumulation, staking for yield, and creative financing tools to maximize balance sheet growth. BitMine describes its approach as 'asset-light,' relying on both internal cash flow and external capital to scale holdings while preserving flexibility. In a separate press release issued on Wednesday, BitMine announced that equity options tied to its Nasdaq-listed shares began trading on the NYSE Options Market under the ticker BMNR. The options, which offer a range of standard expiration dates and strike prices, are intended to increase investor access and broaden market participation. 'This is a major milestone,' Lee said, emphasizing that it gives the market more ways to express directional views on BitMine's growth strategy. Momentum behind institutional demand for ether appears to be accelerating. Bloomberg Senior ETF Analyst Eric Balchunas noted Thursday that BlackRock's iShares Ethereum Trust ETF (ETHA) had surpassed $10 billion in assets under management just one year after launch. ETHA doubled its assets from $5 billion to $10 billion in only 10 days, making it the third-fastest ETF to hit that milestone, after BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Fidelity Wise Origin Bitcoin Fund (FBTC), which achieved this milestone in 34 and 53 days, respectively. Shares of BitMine (BMNR) rose sharply in early Thursday trading, climbing as much as 15.7% to an intraday high of $45.70 before paring gains to $42.64 by 12:19 p.m. ET. The stock was last up 7.9% on the day, extending a weekslong rally as investors responded to the company's accelerating ETH treasury strategy and today's announcement about its latest ETH purchase. At the time of writing, Ether is trading at $3,755, up 4.1% over the past 24 hours, according to CoinDesk data. It has climbed 9.2% over the past seven days, 34.9% over two weeks, and 54% over the past 30 days. Technical Analysis Highlights According to CoinDesk Research's technical analysis data model, ether swung through a $154.68 trading range during the 23-hour session from July 23 at 15:00 UTC to July 24 at 14:00 UTC, climbing to a high of $3,666.09 before dropping to a low of $3,511.41 — marking a 4.26% fluctuation. The token rebounded from early-session losses after multiple breakdown attempts failed near the $3,530–$3,545 support zone. A sharp reversal occurred during the 06:00–07:00 UTC window on July 24, supported by elevated trading volume. Ether defended the $3,600 threshold throughout the session, indicating persistent buying interest and setting the stage for potential range-bound consolidation. In the final hour, from 13:10 to 14:09 UTC, ETH declined from $3,645.31 to $3,626.83, reaching an intraday low of $3,626.27. A brief bounce to $3,650 was quickly rejected following a surge in sell volume between 13:31 and 13:39 UTC, when prices dropped into the $3,631–$3,636 range. Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. Sign in to access your portfolio
Yahoo
25 minutes ago
- Yahoo
BNB Falls 4.3% as Traders Eye Key Support Levels After Record High
BNB slid 4.3% in the last 24 hours, falling from $808 to $764 in a sharp pullback that erased a portion of its gains month-to-date. The drop came on heavy volume, with traders watching a critical support zone around $744 to $753 as the next test for the market. At one point, BNB touched a 24-hour low of $744.56 and briefly rebounded to $759.35. The movement suggests traders may be consolidating near these levels, though price action continues to form lower highs in a sign the downtrend remains intact, according to CoinDesk Research's technical analysis model. The price has kept on sliding throughout the trading session, reinforcing concerns about continued selling pressure. The $744 floor is being watched to see whether holds or breaks, which could set the stage for further declines. BNB has underperformed the wider crypto market over the last 24 hours, as the CoinDesk 20 (CD20) index has dropped 3.6% over the same period. The pullback follows a strong rally that pushed BNB to a record $804 on July 23. Nasdaq-listed Nano Labs acquired $90 million worth of BNB recently, while companies including Build & Build Corp. and WindTree are also accumulating. On social media, Binance founder and former CEO Changpeng Zhao commented on the cryptocurrency's recent performance, showing appreciation for ecosystem participants. Still, the selloff suggests traders are now taking profits or repositioning amid a broader surge in altcoin trading volume and network upgrades across BNB Chain. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
