Despite a Q2 Coronavirus "Disaster," Universal Display's Long-Term Potential Remains Intact
2020 has so far been a tough year for suppliers and manufacturers of consumer electronics. While consumer spending has been resilient -- propped up by government aid amid the COVID-19 pandemic -- it hasn't translated to great sales for many electronic devices. Smartphones, for example, are expected to take a massive 12% dip this year and won't return to growth until the beginning of 2021, according to tech researcher IDC.
And that was the problem for Universal Display (NASDAQ: OLED) during the second quarter. Between some of its manufacturing partners pulling orders forward into the first quarter (as a precaution against possible supply-chain disruptions during the global pandemic) and sluggish demand for devices, the second-quarter numbers looked disastrous. Yet the stock didn't skip a beat and is continuing its rebound after the March market meltdown. What gives?
As is the case with all businesses linked to manufacturing, quarterly (and sometimes annual) results can be incredibly volatile. And while 2020 could go down as a forgettable year for the business, UDC's long-term potential is still intact.
Source Fool.com
