Summary
- Credo had some bad news to share, which caused the stock to lose all YTD gains and then some, wiping out half its market cap.
- The disclosure came unexpectedly, especially since CRDO had given an upbeat outlook not too long ago, helping the stock double in value off the October lows.
- CRDO trades at high valuations, which may have been justified when CRDO was doubling revenue but becomes more questionable with flat growth.
- Long CRDO may make for a better argument down the road but now is probably not the time with no sign the stock has hit bottom.
For further details see:
Credo Technology: Gets Repriced By The Market