Universal Display Corp. (OLED) - Get Report sure knows. Shares of the company tumbled more than 14% to $106 in afternoon trading Monday, March 19, following reports that Action Alerts PLUS holding Apple will create and manufacture its own display screens for the first time ever.
Trading volume surged to nearly three times the 65-day average for OLED stock. Shares were trading about 44% below than the average analyst price target Monday, according to data from FactSet.
Universal Display develops and licenses proprietary OLED technologies to manufacturers of cellphones and other portable media devices. Apple has reportedly invested heavily in creating its own MicroLED screens, which boast similar technological advantages to those Universal Display creates.
While Universal Display's losses were comparably more pronounced Monday, the technology space at large took a beating as Facebook Inc. (FB) - Get Report shares led the plunge. The Technology Select Sector SPDR ETF (XLK) - Get Report dipped more than 2.3%, while the Russell 3000 Index I:RUA fell about 1.6%.
Universal Display stock has fallen about 38% year-to-date, but remains higher nearly 25% in the last 12 months.