We recently compiled a list of the 10 Stocks Defy Market Optimism as Investor Caution Lingers. In this article, we are going to take a look at where Credo Technology Group Holding Ltd (NASDAQ:CRDO) stands against the other stocks.
The stock market stood its ground on Wednesday, with all major indices eking out gains as President Donald Trump softened trade restrictions for three large automakers, reviving hopes that the trade war may not be as bad as it seemed.
The Dow Jones grew 1.14 percent, the S&P 500 rose by 1.12 percent, while the tech-heavy Nasdaq jumped 1.46 percent.
On Wednesday, the White House granted three large automakers a one-month exemption from tariffs after a call with the president, sending their share prices higher during the session.
Ten firms, however, bucked an overall optimism, recording modest declines during the past trading session. In this article, we have listed the 10 names and detailed the reasons behind their performance.
To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
An engineer in a cleanroom testing and tweaking an integrated circuit.
Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Credo Technology Group Holding Ltd (NASDAQ:CRDO) fell by 13.97 percent on Wednesday to close at $46.73 apiece as investors sold off following the release of its earnings performance for the third quarter of fiscal year 2025.
While Credo Technology Group Holding Ltd (NASDAQ:CRDO) posted impressive earnings performance during the latest quarter, investors have already factored in higher income prior to the release given its growth in AI infrastructure and strong customer base, with Amazon, Tesla, and Microsoft to support its future potential.
In the third quarter of fiscal year 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) said net income soared by 7,250 percent to $29.4 million from $428,000 in the same period a year earlier, while revenues increased by 154 percent to $135 million from $53.1 million year-on-year.
In the first nine months of the year alone, the company swung to a net income of $15.6 million from a net loss of $17.89 million year-on-year. Revenues also doubled to $266.7 million from $132 million.
Overall CRDO ranks 1st on our list of Wednesday’s worst performers. 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 more promising than 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.