While shares of Poet Technologies (POET +2.35%) stock have raced higher throughout the week, investors are pumping the brakes on the buying activity today. Lest investors fear that the company, a designer of optical engines, had some troubling news to report, there was no such thing. In fact, there's no obvious cause for the stock's decline.
As of the market's close, shares of Poet fell 4.9%.
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Ode to a young, growth stock
Unlike blue chip stocks that are resilient and don't often fluctuate wildly, growth stocks such as Poet Technologies often exhibit significant volatility -- a dynamic that's on full display this week. On the one hand, shares jumped on Wednesday when investors learned that Northland had increased its price target on Poet Technologies' stock and that Marvell planned to acquire Celestial AI, which designs an optical connectivity platform suited for artificial intelligence (AI) computing.
NASDAQ: POET
Key Data Points
Today, however, shares sank for no apparent reason. Despite the market's generally bullish mood (the S&P 500 was up 0.2% today), investors likely clicked the sell button, deciding that they were content to collect profits.
Are investors wise to write Poet out of their portfolios now?
While Poet seems to be on a roller coaster this week, the reality is that if you were bullish on Poet's prospects when the week began, you should stay just as optimistic today. The stock's rapid rise and fall throughout the week is unsurprising, considering the company is in the early innings of its development as a developer of connectivity solutions for AI infrastructure.
