Fabrinet's stock experienced a significant pre-market plunge of 10.55% on Tuesday, as the optical manufacturing company faced heavy selling pressure following its latest financial results.

The sharp decline was triggered by the company's third-quarter earnings release, which showed that Fabrinet missed analyst expectations for GAAP earnings per share, reporting $3.45 compared to the consensus estimate of $3.56. Despite beating revenue estimates with $1.21 billion in sales, representing 39% year-over-year growth, investors reacted negatively to the earnings shortfall and expressed concerns about the company's forward guidance.

Adding to the negative sentiment, JP Morgan cut its price target on Fabrinet from $700 to $680, reflecting reduced analyst confidence. The market's reaction suggests that elevated expectations heading into the earnings report were not fully met, prompting a significant sell-off in pre-market trading as investors reassessed the stock's valuation following the mixed results.