Shares of Universal Display (NASDAQ: OLED) are down 12.5% as of 12:30 p.m. EST Monday amid a broader stock market plunge and growing concerns of tepid smartphone-industry demand.
On the former, note the S&P 500 is down more than 1.5%, while the tech-heavy NASDAQ Composite Index has lost around 2.5% as of this writing.
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More specifically on Universal Display's decline, one big driver of the market's drop today is Apple (NASDAQ: AAPL) -- down more than 4% after facial-recognition component supplier Lumentum (NASDAQ: LITE) lowered its outlook, citing a reduced shipment request from one of its largest customers. Considering Apple is shipping two new iPhones featuring OLED displays this year, Universal Display shares appear to be falling in sympathy.
To be fair, however, this news shouldn't be entirely surprising, as Universal Display only reduced its own full-year outlook just over a week ago. At the time, Universal Display management stated that while they expect 2019 to be "a meaningful year of growth," the "magnitude of the second-half  pick-up" in OLED material sales simply wasn't happening as quickly as they originally anticipated.
It likely doesn't help that Universal Display is still susceptible to downward momentum on the heels of that quarterly report. But in the end, with shares approaching their 52-week low and the company's long-term story still firmly intact, I think now is a great time for patient investors to open or add to their positions.
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Steve Symington owns shares of Universal Display. The Motley Fool owns shares of and recommends Apple and Universal Display. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.