Why Wolfspeed Stock Is Sinking Today
Shares of (NYSE: WOLF) are sinking on Thursday, down 19.9% as of 2:26 p.m. ET. The fall comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 0.3% and 0.1%, respectively.
The sharp drop doesn't appear to be motivated by any specific news; rather, investors are shedding shares after a major run-up over the past two weeks.
Late last month, the embattled chipmaker filed for Chapter 11 bankruptcy and will continue to operate through the process. When it emerges from bankruptcy, Wolfspeed expects to have reduced its debt by 70% and its interest payments by 60%, giving the company some breathing room. From the announcement through Tuesday of this week, the stock skyrocketed more than 500%. It's more than natural for it to retreat after a run like that.
Source Fool.com
