NEW YORK (TheStreet) -- Shares of Dycom Industries (DY) - Get Dycom Industries, Inc. Report were plunging 13.94% to $72.90 on heavy trading volume mid-afternoon Wednesday after Alphabet's (GOOGL) Google Fiber said in a blog post late yesterday that it would temporarily suspend the Internet service in eight cities.
About 9% of Google Fiber employees will be laid off as a result of the Internet service being scaled back, sources said, according to Bloomberg.
Additionally, Craig Barratt, CEO of Alphabet's Google Access division, will be stepping down. Google Access oversees Google Fiber.
Google is one of Dycom's biggest customers. The company provides labor, tools and equipment for constructing and designing underground and buried fiber-optic networks, such as Google Fiber.
Stifel analysts expect Dycom to see lower revenue from Google Fiber in 2016.
The firm also trimmed its price target to $103 from $106 but maintained its "buy" rating on shares of the Palm Beach Gardens, FL-based company, according to TheFly.
However, Stifel believes that Dycom's other major customers will continue to deploy fiber "aggressively."
AT&T (T) is a major customer of Dycom and is installing high-speed fiber Internet in several cities.
Additionally, Canaccord said in an analyst note earlier today that Dycom has a "trifecta of positive drivers" intact for fiber deployment and views the company as "well positioned" within the early stages of a long term growth story.
The firm has a "buy" rating and $105 price target on the stock.
More than 3.01 million of the Dycom's shares changed hands so far today vs. its average 30-day volume of 505,341 shares per day.
(Dycom is held in the Growth Seeker portfolio. See all of the holdings with a free trial.)
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Dycom Industries as a Buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. The team feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: DY