WOLF - Why Wolfspeed Plunged Today
Shares of Wolfspeed (NYSE: WOLF) , formerly known as lighting specialist Cree, were plunging today, down 14.8% as of 3:11 p.m. ET, nearly three times the huge 5.5%-plus drop in the Nasdaq Composite .
Wolfspeed fell harder than the indexes, as it posted quarterly earnings that missed revenue expectations, although it beat on its bottom line. Still, Wolfspeed remains unprofitable as it transitions into a pure silicon carbide play, with those products just ramping up. Unprofitable growth stocks are having a much harder time these days, given the concerns over inflation and interest rates.
In the first quarter, Wolfspeed delivered 37% revenue growth to $188 million. While 37% growth sounds impressive, that figure was about $2.6 million below expectations. Management attributed the lighter top line to lockdowns in China, which affected some advanced packaging subcontractors.
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Why Wolfspeed Plunged Today