Credo Technology (NASDAQ:CRDO) stock is taking a beating on Wednesday following a warning from the tech company.
In a filing with the U.S. Securities and Exchange Commission (SEC), Credo Technology warns that its largest customer has reduced its demand for the company’s products. Credo says this change isn’t due to its performance and that it will retain its market share with the customer.
As a result of this news as well as macroeconomic headwinds, Credo is providing new guidance. The company now expects revenue for its fiscal fourth quarter of the year to range from $30 million to $32 million. To put that in perspective, Wall Street’s estimate is for revenue of $58.29 million.
Adding to the trouble for CRDO stock is its revenue outlook for its current fiscal year. The company expects revenue growth for the next fiscal year to be flat compared to its current fiscal year.
What This Means for CRDO Stock
It’s no surprise that CRDO stock is falling today as investors sell shares. The warning of lowered revenue has some 2.1 million shares changing hands as of this writing. That’s already above the company’s daily average trading volume of 1.4 million shares.
CRDO stock is down 45.3% in pre-market trading on Wednesday. It’s also likely to see another drop when it releases its next earnings report in April.
Investors looking for all of the hottest stock market news today are in luck!
InvestorPlace is home to all of the latest stock market coverage traders need to know about on Wednesday! That includes why shares of Tenon Medical (NASDAQ:TNON) and TransCode Therapeutics (NASDAQ:RNAZ) stock are rising, as well as the biggest pre-market stock movers this morning. You can read up on all that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
