We recently published a list of 10 Stocks Defy Monday’s Market Optimism. In this article, we are going to take a look at where Credo Technology Group Holding Ltd. (NASDAQ:CRDO) stands against other stocks that defy Monday’s market optimism.
US shares kicked off Monday’s trading with a bounceback from last week’s pessimistic sentiment, as economies took a pause from their tariff war.
Additionally, investors breathed a sigh of relief on the February retail sales report which came in not as bad as feared.
According to the latest figures, retail sales rose 0.2 percent, albeit below the 0.6 percent as expected by analysts. Excluding autos, sales are up by 0.3 percent, in line with economists’ expectations.
Following the news, the Dow Jones clocked in a 0.85-percent gain, followed by the S&P 500 with 0.64 percent, and the tech-heavy Nasdaq with 0.31 percent.
Meanwhile, 10 companies bucked a wider optimistic sentiment over a flurry of negative corporate news that weighed down on their shares. In this article, we have listed Monday’s 10 worst performers and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.
An engineer in a cleanroom testing and tweaking an integrated circuit.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Credo Technology dropped its share prices by 4.33 percent on Monday to end at $47.02 each as investors repositioned portfolios following news that it filed a patent infringement complaint against four companies for the importation of products that infringe its patents related to Active Electrical Cables (AEC).
Last week, CRDO asked the United States International Trade Commission to initiate an investigation against Amphenol Corporation, Molex LLC, TE Connectivity PLC, and Volex PLC to block the importation of its AECs.
In addition, CRDO said it was filing parallel complaints in the Federal District Court alleging willful infringement as it provided notice of its patents to the said companies in September 2023.
“The action against these companies reflects Credo’s commitment to protecting its foundational innovations in AEC technology. Since its founding in 2008, Credo has developed, created, and delivered to U.S. customers a variety of high-speed wired connectivity solutions in the data infrastructure market, including its series of distinctive purple HiWire AECs,” the company said.
Overall, CRDO ranks 6th on our list of stocks that defy Monday’s market optimism. While we acknowledge the potential of CRDO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CRDO but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.