Why Credo Technology Sank This Week
Credo delivered impressive triple-digit growth, but margin pressure led to a violent sell-off amid a high valuation.
Overview
Shares of AI networking up-and-comer Credo Technology (NASDAQ: CRDO) sank this week, falling 29.5% through Thursday trading, according to data from S&P Global Market Intelligence.
Credo delivered its first fiscal quarter 2027 earnings results this week, and while the headline numbers technically beat analyst expectations, the stock plunged due to some less-than-perfect margin figures. Even after this week's plunge, Credo trades at a high valuation, so anything less than a big beat and raise beyond bullish expectations was probably bound to be met with a pullback.
Details
In its fiscal first quarter, Credo grew revenue 114.7% to $479.0 million, while adjusted (non-GAAP) earnings per share rocketed 130% higher to $1.20. Both figures actually beat expectations. Management also guided for strong quarter-over-quarter revenue growth in the current period, which also came in well above expectations.
Source
Originally published at www.fool.com.