Here's Why Navitas Semiconductor Shares Slumped This Week

Shares in Navitas Semiconductor (NASDAQ: NVTS) fell by 14.7% in the week to Friday morning. The move comes in a week when the company released its second-quarter results.The earnings were in line with analyst expectations, but the magnitude of the losses may have reminded investors that it will be a while before Navitas turns profitable. In addition, the need to raise capital to support investment resulted in the sale of 20 million shares.As such, investors need to get used to the idea that the company will make losses over the next few years, and raising capital via equity sales can dilute existing shareholders' claim on future profits and cash flows.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool