After a 100% surge in the same year, the stock price fell sharply, and shortly before the release of the financial report, Conning was heavily targeted by institutions for "short selling", with JP Morgan bluntly stating that there is "zero margin for error".

JPMorgan Chase has placed Corning Inc (GLW.US) on its "Negative Catalyst Watch" list before the release of its second quarter financial report, not due to concerns about its performance fundamentals, but because its valuation is already at an excessively high level. JPMorgan Chase analyst Joseph Cardoso stated in a research report on Thursday, "We have placed Corning Inc on the Negative Catalyst Watch list because its stock price has shown unexpected resilience in the current market environment. The expected P/E ratio for Corning Inc in 2028 is now over 30 times (implying an implied P/E ratio of around 40 times for its optical communications business), with almost no room for error before the financial report release." He further pointed out, "We still expect the optical communications-enterprise business segment to perform strongly, but we suspect that its growth will be partially offset by lower-than-seasonal performance in the optical communications-carrier business segment the latter, after showing strong performance in the first quarter of 2026, may fall back. Other business segments are expected to roughly meet expectations. Adding to the growing cautious sentiment is the signs of weakness in the television display panel data as we enter the latter half of 2026." Despite a recent pullback, Corning Inc's stock price has still gained nearly 100% year-to-date. The stock reached a historical high of $255.69 on June 29, before sharply falling along with most hardware and networking equipment stocks. JPMorgan Chase maintains a "Neutral" rating on Corning Inc with a target price of $200. Earlier this month, analyst Passage Research downgraded Corning Inc from "Buy" directly to "Sell" by two levels, citing that "even though its growth related to AI is strong and it maintains important partnerships with Meta (META.US) and NVIDIA Corporation (NVDA.US), its valuation is unsustainable." Passage Research stated, "I believe the current valuation is a heavy burden, and the market is permanently capitalizing on peak expectations for the AI theme. I have downgraded the rating from Buy to Sell and am waiting for a more suitable entry point." Corning Inc is scheduled to release its second quarter 2026 financial report before the market opens on July 28 (Tuesday). The market consensus expects adjusted earnings per share of $0.75 and revenue of $4.63 billion. Affected by the above news, Corning Inc's stock price fell nearly 5% in pre-market trading on Thursday.