Why Shares of Avnet Are Falling Today

Shares of Avnet (NASDAQ: AVT) were down more than 10% on Friday afternoon after the electronic component distributor said that Texas Instruments (NASDAQ: TXN) was ending its relationship with the company. The decision is a tough blow for Avnet at a time when tech companies are trying to reduce costs and streamline operations.

Avnet said in a regulatory filing that Texas Instruments plans to end its distribution relationship with Avnet on Dec. 31, 2020. Avnet said that the decision was made "due to the evolution of [Texas Instrument's] strategy," adding that Texas Instruments products accounted for about 10% of Avnet sales during its fiscal 2019.

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Source Fool.com