Coherent Corp. (COHR) saw a 33% decrease in stock price due to weaker than expected guidance

Fidelity Investments released its “Fidelity Growth Strategies Fund” Q1 2025 investor letter, focusing on mid-cap growth investments. The fund’s Retail Class shares returned -8.03% in Q1, underperforming the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks saw fluctuations due to post-election optimism turning to concerns over government actions and trade uncertainty.

In Q1 2025, Fidelity Growth Strategies Fund highlighted Coherent Corp. (NYSE: COHR), a manufacturer of optoelectronic components. Coherent Corp. saw a one-month return of 8.24% and a 19.63% gain over the last 52 weeks. On July 1, 2025, Coherent Corp. closed at $88.36 per share, with a market cap of $13.735 billion.

Fidelity Growth Strategies Fund noted a performance gap with the Russell benchmark, attributing it to stock picking and industry choices. Coherent Corp. (-33%) was a detractor due to weaker-than-expected guidance in Q4 2024. Despite reducing the stake, Coherent remained a top 10 overweight holding as of March 31, 2025.

Coherent Corp. (COHR) rallied 5.77% as funds showed interest in AI stocks. The company reported Q3 2025 revenue of $1.5 billion, up 4% sequentially and 24% year-over-year. While Coherent holds potential, the focus remains on AI stocks for higher returns within a shorter timeframe. Check out undervalued AI stock poised for massive gains.

Read more at Yahoo Finance: Coherent Corp. (COHR) Slid on Weaker Than Expected Guidance