Half a Billion Dollars Lost Over the Weekend: Israeli Companies Hit on Wall Street
In this week's Globes review, we analyze the performance of Israeli stocks on Wall Street. Cybersecurity weakness wiped $1.3 billion off Check Point's valuation, Radcom shares plunged 20% following a guidance cut, and a failed clinical trial sent Karyopharm to an all-time low.
The last two trading days of last week on Wall Street were positive, led by the Nasdaq index, which rose by 3.8% cumulatively, while the S&P 500 and Dow Jones indices settled for more moderate gains of 2.4% and 1.7%, respectively. Here are the Israeli stocks that stood out in trading:
Check Point: Weakened by 9% in Two Days
For several months, Check Point's stock has struggled to gain momentum, and the financial reports published last Thursday did not change the trend. The stock fell by 8.2% on the day of the report and weakened by another 0.9% on Friday, resulting in a $1.3 billion drop in market value to approximately $13 billion.
Managed by Nadav Zafrir, the cybersecurity firm beat profit forecasts in the third quarter but recorded revenue below analyst expectations. The company provided a lukewarm forecast for the third quarter, projecting revenue of $655–685 million. Analyst Joseph Gallo from Jefferies maintained a "buy" rating but lowered the target price to $150, noting that changes to the sales organization are causing short-term "disruption" while aiming for growth in 2027.
Radcom: Annual Revenue Forecast Cut
Radcom's stock ended the week with a decline of over 20%. The company, which provides AI-based service assurance solutions, surprised the market by cutting its forecasts a month after the second quarter ended. Revenue for the second quarter is expected to be only $12 million, compared to the $19.1 million analysts expected. The annual revenue forecast was lowered to $57–63 million, down from the previous $78.6 million.
CEO Benny Epstein attributed the shortfall to project delays rather than contract cancellations. He stated that the company expects to return to double-digit growth in 2027. Since its annual peak during a recent activist shareholder struggle, the stock has lost 36.6%, and Radcom's market value now stands at $171 million.
Karyopharm: Clinical Trial Failure Hits Stock
Karyopharm Therapeutics' stock plunged by 72.6% on Friday after the company announced the failure of a phase 3 clinical trial for an endometrial cancer drug. The company will now focus its resources on treatments for myelofibrosis and multiple myeloma.
Following the news, the company's market value fell to just $44 million, an all-time low. Karyopharm was founded by Dr. Sharon Shacham and maintains a development center in Israel.
