Mobileye Global (MBLY) Tumbles 6.8% as EU Free Trade Deal Pause With Israel

We recently published 10 Stocks Melt Down in Hours. Mobileye Global Inc. (NASDAQ:MBLY) is one of the worst performers on Wednesday.

Mobileye ended two straight days of gains on Wednesday, shedding 6.85 percent to close at $13.88 apiece as investor sentiment was dampened by the European Union’s (EU) decision to partially pause a trade deal with Israel amid its ongoing conflict with Palestine.

On Wednesday, European Commission President Ursula von der Leyen called for the suspension of a free trade agreement with Israel, although she did not specify which products and industries would be affected.

Mobileye Global Inc. (NASDAQ:MBLY), an Israel-based firm, is particularly at risk if the automotive industry gets hit by the new trade policy, as any imposition of tariffs could weigh down on its profits and margins.

Three of Mobileye Global Inc.’s (NASDAQ:MBLY) key customers are based in Europe, including Volkswagen, BMW, and Stellantis.

In the second quarter of the year, Mobileye Global Inc. (NASDAQ:MBLY) narrowed its net loss by 22 percent to $67 million from $86 million in the same period last year. Revenues, however, grew by 15.26 percent to $506 million from $439 million year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.