Ocean Power Technologies’ Stock Drops Over 50%, Reversing 3 Days of Gains: Retail Mulls Over Booking Profits

Ocean Power Technologies (OPT) stock tumbled over 50% on Monday morning, erasing gains from the last three days as the dust settled around the company’s preliminary second-quarter earnings surprise.

The company, focused on harnessing ocean waves for renewable energy, estimates second-quarter revenue to exceed $2 million, more than double from a year earlier.

Net loss is expected to decrease by over 40% to $4 million from $7.2 million year-over-year (YoY), and operating expenses are also expected to decrease by about 40%.

The company also reaffirmed its guidance to reach profitability by Q4 2025, citing strong product demand and effective cost management.

The preliminary results drove OPT’s stock to a two-year high on Tuesday, a sharp rebound from its recent all-time lows.

On Stocktwits, OPT saw a 14x jump in message volumes over the last seven days and a 4.18% jump in watchers.

Some users on the platform languished over lost profit booking after the stock’s fall this morning, while others were thankful for selling before markets closed on Monday. 

While the company released its early earnings report on Monday, it plans to hold a conference call on Dec. 17 to discuss these results. 

As the company prepares to discuss its growth and cost-reduction plans, investors are keen to hear more about its expansion into new markets, especially after it announced the delivery of WAM-V 16 and WAM-V 22 unmanned surface vehicles to customers in Latin America in late October.

The stock has risen slightly over 6% year-to-date, lagging behind broader market performance.

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