Fabrinet (FN) shares plummeted 6.14% during intraday trading on Tuesday, extending a period of significant weakness for the optical communications and electronic manufacturing services provider.

The sharp decline appears to be driven by multiple factors. Firstly, the stock is facing broad sector-wide pressure, with the entire optical communication and electronic manufacturing services sector trading lower in a coordinated move. This suggests investors are taking a cautious stance on the industry group as a whole.

Secondly, analysts note a typical pre-earnings pullback pattern, where funds lock in profits after a recent rally, especially with the company's quarterly report scheduled for early May. Finally, the stock is caught in a broader sell-off across the technology sector, partly attributed to reports that OpenAI missed internal revenue and user targets, casting a shadow over AI-related investments.