Lam Research Stock Extends A 10-Day Losing Streak To A 24% Loss
Shares of Lam Research (LRCX) have closed lower in each of the last 10 sessions, a cumulative decline of 24.0%. That erased about $104.5 billion from the company’s market value, which now stands at about $330.3 billion. The stock closed at $263.94 on Friday, October 16, 39.0% below its 52-week high of $432.87 and 90.0% above its low of $138.95.
LRCX Versus The S&P 500
Returns for LRCX and the S&P 500 over the streak and the periods around it, all ending Friday, October 16 and including dividends:
| Return Period | LRCX | S&P 500 |
|---|---|---|
| 1 Day | -4.9% | -1.1% |
| 10 Days (Current Streak) | -24.0% | -0.8% |
| 1 Month (21 Trading Days) | -1.9% | 0.4% |
| 3 Months (63 Trading Days) | -13.9% | 3.2% |
| Year To Date | 54.6% | 12.9% |
| 1 Year (252 Trading Days) | 83.1% | 16.2% |
How The Streak Compares With The Market
Over the same 10 trading days, the S&P 500 returned -0.8% including dividends, so the slide is mostly Lam Research’s own story rather than the market’s. 1 other S&P 500 stock is currently on losing streaks of 10 days or longer. Over the past three months the stock is down 13.9%, a window that includes the streak; over the other 53 sessions of that window it was up 13.4%.
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 26.0% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 35.3%, versus a median of 21.6%; and the stock trades at 45.5 times trailing earnings against a median of 34.0. The read is mixed.
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A Slide Like This Is Why Diversification Exists
Watching one stock fall day after day is the clearest lesson the market teaches about single-name risk. Whether this particular decline is an opportunity or a warning, the deeper point is the same: no one name should be able to do this to your portfolio.
The Trefis High Quality (HQ) Portfolio is built on that principle: roughly 30 businesses selected for consistent cash generation, strong margins, and resilient balance sheets, sized and rebalanced with rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Study the slide; spread the risk.