Corning (GLW) Stock Plunges 13% After Surprise $2 Billion Stock Offering
TLDR
- Corning fell 13.6% after announcing a $2 billion at-the-market equity offering through Goldman Sachs
- The sell-off was driven by dilution fears, with no fixed price or share count disclosed
- Mizuho maintained a Buy rating but cut its price target from $210 to $180
- AI spending jitters added pressure, dragging down the wider optical hardware sector
- Wall Street holds a Moderate Buy consensus with an average price target of $188.75, implying ~31% upside
Corning (GLW) dropped 13.6% on Monday after the company revealed it will sell up to $2 billion in new stock through an at-the-market program with Goldman Sachs as sole sales agent. The stock was trading around $145.45 at the time of the move.
The drop was swift. At-the-market offerings let companies drip new stock into the market without announcing a fixed price or share count, which means existing investors have no clear picture of when or how much new supply will hit.
After a 65% run-up this year, that uncertainty gave traders plenty of reason to sell.
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