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.
Source Fool.com