POET Stock On Track To Record Biggest Single-Day Fall After Disclosing Order Cancellation From Celestial AI – Here’s What Happened

• POET had disclosed sensitive details related to the purchase orders and shipping information, Marvell said.
• In an exclusive interview with Stocktwits last week, CFO Thomas Mika said POET plans to begin shipments of orders tied to Marvell, with some deliveries expected as early as next quarter.
• Mika also highlighted the company’s $5 million production order for 800G optical engines and outstanding invoices from Celestial AI.

Shares of POET Technologies (POET) plunged 46% on Monday, marking their sharpest intraday drop on record, after the company disclosed that all purchase orders from Celestial AI had been canceled.

The move came after Marvell Technology, which recently acquired Celestial AI, cancelled the orders, citing a breach of confidentiality obligation. This includes the initial production orders first announced in 2023.

Marvell stated that POET had disclosed sensitive details about purchase orders and shipping information.

CFO Highlights $5 Million Order From Celestial To Stocktwits

In an exclusive interview with Stocktwits last week, POET Technologies’ CFO Thomas Mika said the company has secured a purchase order tied to Marvell Technology and plans to begin shipments, with some deliveries expected as early as next quarter.

“We've got a purchase order from them that we’re gonna ship against and we intend to continue that relationship and build it over time,” Mika told Stocktwits’ Michele Steele.

Mika also highlighted the company’s $5 million production order for 800G optical engines and outstanding invoices from Celestial AI. The update came after a short report from Wolfpack Research questioned the company’s strategy and called its pivot from solar to photonics and AI as evidence of serial strategy failure.

Wolfpack Research also called POET an “obvious stock promotion,” citing multiple business pivots and just $2.3 million in revenue since 2020. It also warned U.S. investors about potential tax risks, noting that the company could be classified as a Passive Foreign Investment Company (PFIC), which could trigger stricter IRS rules and higher taxes.

How Did Retail React?

Despite the intra-day slump, retail sentiment for POET on Stocktwits remained in the ‘extremely bullish’ territory, while message volumes on the platform jumped around 160%.

One user chose to see the positive side, arguing that Marvell’s orders meant POET has a compelling product. The user expects management to learn from this fiasco and sees the stock trading at a discount.

Another user called it an “unacceptable mistake” but added that they would buy the dip.

The stock has gained more than 21% so far this year.

Read also: SGMT Stock Surged 40% And Breached 200-DMA For The First Time In Nearly 3 Months – What’s Got Retail Buzzing?

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