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What Credo's 18% Drop Was Not About
Seeking Alpha • • business
Key Points:
- Credo Technology Group Holding reported record Q1 revenue of $479 million, marking a 114.7% year-over-year increase and surpassing both company and Wall Street expectations.
- The company maintained strong non-GAAP gross margins at 68% and raised its full-year revenue growth guidance to over 85%, reaffirming its optical ramp plans for fiscal year 2027.
- Despite these strong financial results and an improved outlook, Credo's stock price dropped 18% after earnings, highlighting a disconnect between the company’s fundamentals and market reaction.
- The analyst maintains a Buy rating on CRDO shares at $186, citing robust fundamentals and enhanced forward estimates that present a favorable asymmetry for investors.
- The article emphasizes that the stock’s decline was not due to the company’s operational performance, which remains solid and growing rapidly.
