Danish IT stock plunges after grim forecast

Asetek, Danish cooling equipment producer for computers and data centers, saw its stock fall almost 40% on Copenhagen’s Nasdaq after a disappointing outlook. The company’s stock declined from 5.02 to 3.10 following a late-night announcement which retracted previous expectations of increased demand for water cooling in late 2024. Asetek warned the downward trend may persist into 2025 and will revise future financial projections soon. Despite struggles with cooling systems, Asetek’s gaming equipment for racing simulators is thriving, with revenue expected to rise 40-60% in 2024. The company, founded by André Sloth Eriksen and previously listed in Norway, recorded over 500 million kroner in revenue last year and predicted this year’s revenue growth to be between -5% and +5%.