Near-40% Pullback From Highs Sparks Trapped-Investor Debate
Recent volatility in Taiwan stocks has intensified, with some previously strong electronics heavyweights seeing sharp pullbacks. Delta Electronics (2308) has fallen all the way from a high of 2500 to 1510, a decline of about 39.6%. A netizen recently posted on Threads that they bought in at the high, feeling helpless as the stock price fell sharply, and questioning why the company, which remains profitable, has not stepped in to support the share price, worrying about being trapped at the high for a long time. The post quickly sparked lively discussion among netizens.
Gap Between Earnings and Valuation Becomes Market Focus
The original poster argued that Delta Electronics is a consistently profitable company, making it hard to accept being stuck at the peak after buying at a high, and questioned whether the company should take measures to stabilize the share price. Based on the prices provided, the decline is nearly 40%, putting considerable pressure on investors who bought at high levels, and sparking market discussion about the relationship between corporate earnings performance and share price moves.
In response, many netizens said that continued profitability does not necessarily mean the share price will rise. If the share price had already priced in overly high growth expectations, a correction could still follow. Some comments bluntly said the P/E ratio had been bid up too high and had no direct relationship with the company's operations, while others said that apart from the earlier excessive gains, Delta Electronics does not have many problems, and the market may have already priced in growth for the next several years. Other netizens noted that Delta Electronics's revenue for the first three quarters rose 37.2% year-on-year, with fundamentals still showing growth momentum, but whether subsequent earnings can support the current valuation is the key focus for the market.
Earnings Call Outlook and Key Points to Watch
Many netizens disagreed with the idea that the company should step in to support the share price, saying investors should assess entry prices and market risks themselves and should not expect the company to prop up the share price just because it fell. Some shareholders also shared their feelings of being trapped, revealing they bought at 1600 and are still waiting for a rebound. Some netizens believe this wave of declines may be related to foreign investors taking profits, and that ahead it will still be necessary to watch overall sentiment, corporate earnings outlooks and valuation changes, as well as AI power demand, gross margin and operating outlook to be released at the 10月29日 earnings call.