Why Netlist (NLST) Stock Is Plunging Today

NEW YORK (TheStreet) -- Netlist  (NLST) fell sharply Wednesday after the technology company reported second-quarter earnings that came up short of analysts' expectations.

Net loss widened year-over-year to $3.5 million, or 8 cents a share, from $2.9 million, or 9 cents a share. Revenue dipped to $4.9 million from $5.1 million in the same period one year earlier. Analysts polled by Thomson Reuters expected a net loss of 5 cents a share on revenue of $7 million.

The stock was down 15.75% to $1.07 at 10:53 a.m.

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Separately, TheStreet Ratings team rates NETLIST INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETLIST INC (NLST) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."

You can view the full analysis from the report here: NLST Ratings Report

NLST Chart NLST data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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