Corning Stock Has Lost Half Its Value Since June. Is It a Buy Before Its Next Report?
2026-10-25 21:43
•Daniel Sparks •The Motley Fool
•••••• ••• Axe Cap view
Corning’s Sharp Slide Offers a Potential Entry Point
After halving from June highs, Corning’s stock now trades at more reasonable multiples given its strong earnings growth and AI-linked partnerships.
Corning’s (GLW) share price has taken a beating, falling 51% since June despite 30% growth in core earnings per share. The stock was priced for perfection at nearly 95 times earnings, driven by hype around deals with Nvidia and Amazon tied to AI and data center expansion. Now, trading closer to 29 times forward earnings, it looks fairly valued for a tech supplier with a dominant role in optical communications—its fastest-growing segment. For South African investors, this is relevant because companies like FirstRand and Standard Bank tend to track USD/ZAR movements which respond to global tech sentiment and capital flows. A stable or weakening rand against the dollar might dampen local appetite for shares linked to global tech. The main risk is that AI spending by big data centers could slow, hitting Corning’s growth. But with a strong backlog and improving margins, this selloff may be a buying opportunity ahead of their upcoming earnings report on October 27. this is just our opinion and not financial advice
Buy selectively in Corning as a play on sustained AI infrastructure growth, but keep an eye on USD/ZAR changes for local entry points. Trim if valuations creep back above 35 times forward earnings.
- GLW
- USD/ZAR
- AI infrastructure spending slowdown
- USD/ZAR volatility impacting foreign investor flows
6/10
Corning's stock has plummeted 51% from its June peak of $255.69 to around $125, despite strong fundamentals with core earnings per share growing 30% year-over-year. The decline reflects a valuation correction after the stock reached 95x earnings following major partnerships with Nvidia and Amazon. At current valuations of 44x trailing and 29x forward earnings, the stock appears reasonably priced for a company growing earnings at 30%, with optical communications driving three-quarters of growth. The analyst suggests the sell-off warrants consideration ahead of Q3 earnings on October 27.
Our take is based on reporting first published by The Motley Fool.