Cogent’s Descent

Cogent Communications, ticker CCOI, had a day. Shares went down, quite a bit. Thirty-three point eight percent, at one point. It settled to a twenty-seven percent loss by the time anyone really noticed. So it goes.

Numbers and Such

They lost less money per share than expected, which is something. Sixty-four cents, instead of the predicted dollar oh three. Good for them. Revenue, though, was down. Four point seven percent. Two hundred forty million, two hundred oh five, it’s all just numbers, really. The Street wanted two forty-three point seven million. Humans always want more. So it goes.

A Falling Knife, Perhaps?

Margins are shrinking. That’s rarely a good sign. They bought some fiber optic network from Sprint back in twenty twenty-three. It’s losing customers. Thousands of them, every quarter. Like sand through an open hand. And the big clients, the ones who actually pay the bills, shrunk by twenty percent this year. Twenty percent. It’s a significant number. So it goes.

The stock is down seventy-seven percent over the last year. It trades at less than one times sales. They’re hoping a new service, Optical Wavelengths, will bring people back. A hope, like most. They need it to, of course. Cash reserves are getting thin. That’s always problematic.

The average Wavelength site has about two customers. Two. That’s not exactly a roaring success. Revenue per client is in the thousands, not millions. Small numbers in a very big world. It feels… precarious.

I’ve seen this movie before. It usually ends with someone holding the bag. It’s not a rebound opportunity. It’s a falling knife. And I, for one, prefer to keep my fingers attached. So it goes.

2026-02-21 00:04

Numbers and Such

A Falling Knife, Perhaps?

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