Enovix Corporation (ENVX) shares are experiencing a significant pre-market plunge of 11.31% on Thursday, extending the 7.95% drop seen in after-hours trading on Wednesday. The sharp decline comes in the wake of the company's third-quarter earnings report, which revealed a mixed picture of current performance and future expectations.

While Enovix reported better-than-expected Q3 results, with revenue of $8.0 million (up 85% year-over-year) and a narrower-than-anticipated non-GAAP loss of $0.14 per share, investors appear to be focusing on the company's disappointing fourth-quarter guidance. Enovix projected Q4 revenue in the range of $9.5 million to $10.5 million, falling short of analyst estimates of $12.05 million. The company also guided for a wider adjusted loss of $0.16 to $0.20 per share, compared to the $0.14 loss per share expected by analysts.

The market's negative reaction reflects growing concerns about Enovix's path to profitability and the pace of its revenue growth, particularly in the competitive battery sector. Despite management's assurances of "continued operating progress" and advancement toward the commercial launch of its AI-1 battery technology for smartphones, investors seem wary of the company's ability to meet expectations in the near term. The stock's decline may also have been exacerbated by Canaccord Genuity's decision to cut its target price for Enovix from $22 to $21, signaling tempered optimism among analysts.