Guidance MessagingThere is some confusion around the messaging of the guidance, which management has 'more confidence' in but that only requires an anemic 2.5% q/q growth in the next two quarters to reach the midpoint.
Investor SentimentInvestor sentiment suggested buyside expectations into the Q were higher than our street-high estimates, with significant investor skepticism about the sincerity of the initial guidance, as well as the revised guidance.
Market ViewShares are under pressure on a view that the upwardly revised guidance reflects seasonal headwinds and limited demand.