What Happened?
Shares of autonomous driving technology company Mobileye (NASDAQ:MBLY) fell 4.3% in the morning session after Wolfe Research downgraded the stock to "Peer Perform" from "Outperform," citing concerns about its growth prospects. The research firm, led by analyst Emmanuel Rosner, noted a lack of near-term catalysts for the company. The analyst indicated that Wall Street estimates for 2026 appeared too high. Wolfe Research's adjusted operating income forecast of $288 million sat 16% below the consensus. The firm also stated it expected only low-single-digit top-line growth for the company.
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What Is The Market Telling Us
Mobileye’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Mobileye is down 2.4% since the beginning of the year, and at $10.97 per share, it is trading 42.5% below its 52-week high of $19.08 from July 2025. Investors who bought $1,000 worth of Mobileye’s shares at the IPO in October 2022 would now be looking at an investment worth $378.49.
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