ABB (ABBN.SW)

ABB's price has dropped roughly a tenth in the past month, its steepest slide in a while.

What is going on right now?

The stock fell about 5% in a single day and around 12% over the past month, pulling it well below where it had been trading for most of the year. The drop has been sharp and fast.

How is the business itself doing?

ABB makes the electrical equipment, motors, and automation systems that keep factories, power grids, and buildings running. Revenue grew about 7% recently, though profits dipped slightly, down around 2%.

What stands out?

The price is now sitting at about 33 times what the company earns in a year. ABB carries modest debt, roughly half of what it owns, and brings in close to $2 billion a year in cash after expenses.

What comes next?

Big tech companies like Meta are planning to spend over $135 billion on data centers, which need exactly the kind of electrical infrastructure ABB builds. Whether those plans translate into real orders for ABB is the thing to watch.