Why Tuya Stock Plummeted on Tuesday

A disappointing earnings report was the catalyst for Tuesday's sell-off of Tuya (NYSE: TUYA), a China-based company that operates an Internet of Things (IoT) cloud development platform. The company's American depositary shares (ADS) fell by as much as 20% during the session before recovering to end the trading day nearly 10% lower.

In the earnings release published after market hours Monday, Tuya said that for the fourth quarter, it booked revenue of $75 million -- roughly 19% higher on a year-over-year basis. On the other hand, the company's non-GAAP (adjusted) net loss deepened to nearly $49 million ($0.09 per ADS), from the year-ago period's deficit of slightly more than $18 million.

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Source Fool.com