Why Is Wolfspeed Stock Jumping This Week?
Shares of Wolfspeed (NYSE: WOLF) are on the move this week, up 5.6% as of market close on Thursday, though they gained as much as 25.8% earlier in the week. The jump comes as the S 500 and Nasdaq-100 gained 0.7% and 1.5%, respectively.
The embattled chipmaker's stock is up and down this week after gaining nearly 90% last week. Investors are weighing what the company might be worth after exiting bankruptcy.
Wolfspeed management expects the company to emerge from Chapter 11 bankruptcy within just a few weeks. A bankruptcy court approved Wolfspeed's plan to slash $4.6 billion in debt, paving the way for the company to exit bankruptcy. The plan will see Wolfspeed reduce its debt load by 70% and its annual interest expenses by 60%. Wolfspeed filed for Chapter 11 bankruptcy on June 30 this year after its debt problems proved insurmountable.
Source Fool.com
