CRDO - Why Credo Technology Group Stock Collapsed Today
Shares of communications technology company Credo Technology Group Holding (NASDAQ: CRDO) won the dubious distinction of being the Nasdaq 's second-worst performing stock Tuesday morning. It was down by 46% through 10:40 a.m. ET after management issued a startling earnings warning Monday night.
In an 8-K filing with the SEC, Credo advised that its "largest customer," responsible for approximately 30% of the sales the company makes, "has reduced its demand forecast for certain Credo products." As a result of this unfortunate event, which Credo says is unrelated to its own performance, the company warns that its revenue for its fiscal Q4 2023 (which ends April 29) will be no more than $32 million, and potentially as low as $30 million, in contrast to the $58.3 million that analysts had been forecasting.
And it gets worse.
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Why Credo Technology Group Stock Collapsed Today