AICoin AI: Jabil’s AI Growth Fails to Prevent Stock Plunge Despite Strong Earnings

Jabil (JBL) shares tumbled 9.7% intraday before closing 6.7% lower, defying expectations after reporting robust Q4 earnings and bullish AI-driven guidance. The selloff highlights market skepticism toward richly valued stocks, even with strong fundamentals.

While AI-related sales are projected to grow 25% next year, weak performance in automotive (-5%), healthcare (+4%), and connected living (-27%) segments undermined investor confidence. The stock's 99.6% annual gain prior to earnings created elevated valuation concerns at 43.7x trailing P/E.

The disconnect between strong results and price action reflects growing selectivity in equity markets. Companies must now deliver flawless execution across all business lines to justify premium valuations, especially in tech-adjacent sectors where AI promises remain under scrutiny.