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In the age of brutal selloffs, guidance below expectations is considered to be a cardinal sin, and European semiconductor company STMicroelectronics (STM) was recently found guilty of it. The scene of the crime: its Q2 results, wherein it guided for Q3 revenues to be $3.7 billion, instead of $3.8 billion. That's it. A gap of $100 million was enough to trigger a free fall of the stock by more than 20% in just two trading sessions.
Yet, these are exactly those opportune moments that patient, long-term investors wait for to accumulate a quality stock. However, is that the case with STM? I reckon it is, and here's why.
