This company is growing 28% a year. So why are investors fleeing?
Record revenue, record orders, $153 million in cash. And the stock is 57% below last year's high. The market got this company wrong twice—and the second mistake is more dangerous for investors' money than the first.
Key points
The company reports record revenue, record orders and $153 million in cash, and the stock is 57% below last year's high
A screener shows a P/E around 10 and a net margin over 40%, but both numbers describe something different from what they seem
When an analyst asked about the share of data centers in the record orders, the company's CEO answered with a single sentence
A single order of $25 million would have brought in four times less last year, and the reason has nothing to do with demand
Bulios's conservative model puts fair value at $15.36, analysts are targeting $55—that spread is itself a story
Two charts that contradict each other
American Superconductor $AMSC reported a quarter in early August that it never had in its thirty-year history. Revenue for the first quarter of fiscal 2026 reached a record $94.1 million, up 30% year over year. New orders exceeded $130 million, also a record. The company has $153 million in cash and generated $16 million in operating cash flow in three months, almost four times last year's figure.
But the stock price chart tells a different story. On October 15, 2025, the stock traded at $70.49. On February 5, 2026, it was selling for $24.87. Today it trades around $30.5, about 57% below the peak, with a market cap of roughly $1.4 billion.
So the business has never looked better and the stock has lost more than half its value. Someone is wrong. Either the market a year ago, when it pushed the stock to seventy dollars, or the market today. The answer is more uncomfortable: it was wrong in both cases, just differently each time. And understanding both mistakes is more valuable for an ordinary investor than any price target.