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.
Shares of AI networking company Credo Technology (NASDAQ: CRDO) plummeted 29.5% this week, according to S&P Global Market Intelligence data. Despite delivering first fiscal quarter 2027 earnings results that met analyst expectations, the stock's decline was attributed to suboptimal margin figures. Even with this week's decline, Credo's stock trades at a high valuation, making any earnings report less than a big beat and raise beyond bullish expectations likely to trigger a pullback.
In its fiscal first quarter, Credo experienced a 114.7% revenue growth, reaching $479.0 million. The adjusted (non-GAAP) earnings per share also surged by 130%, landing at $1.20, both figures surpassing expectations. Management further forecasted strong quarter-over-quarter revenue growth for the current period, which also exceeded expectations.
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- Why Credo Technology Sank This Week nasdaq.com
