Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision manufacturing services, saw its stock price plummet by 12.42% on November 5, 2024, despite reporting record revenue for the first quarter of fiscal 2025. The company's revenue surged 17% year-over-year to $804 million, driven by strong growth in its optical communications and datacom segments.

However, Fabrinet faced significant challenges during the quarter, which weighed down on its stock performance. One major headwind was the foreign exchange evaluation loss of $7 million due to the stronger Thai baht, which is expected to exert further pressure on gross margins in the upcoming quarters.

Additionally, the company experienced uncertainty around product mix shifts, particularly in the datacom segment. The mix shift in datacom revenue between 400 gig and 800 gig transceivers was not fully anticipated, affecting visibility. Furthermore, the ramp-up of 1.6 Terabit transceivers, a key growth driver, is dependent on the customer's timeline for shipping the Blackwell platform, which has faced delays.