Olo Inc (OLO)

Shares of Olo Inc (OLO) dropped by 25.64% from $5.85 to $4.35 in the trading on Tuesday, November 7, 2023. The reason why OLO down is due to concerns about the company potentially losing one of its major customers. The market was alarmed by news that chicken restaurant chain Wingstop might not renew its contract with Olo when it expires in Q1 2024. Wingstop is one of Olo's significant customers, with nearly 2,000 locations, causing concern among investors.

Olo's management raised its full-year revenue guidance for 2023, expecting a 21% increase compared to 2022. While management downplayed the impact of potentially losing Wingstop, investors worry about a trend where larger chains like Subway and now Wingstop opt to handle technology platforms in-house, posing a potential challenge for Olo in the future.