Why Wolfspeed Stock Is Plummeting Today
(NYSE: WOLF) stock is seeing big sell-offs in Tuesday's trading. The company's share price was down 8.8% as of 2:30 p.m. ET and had been off as much as 11.2% earlier in the day's trading.
Wolfspeed stock is losing ground today in conjunction with a new report from Axios detailing recent struggles at the business. The company's share price is likely also facing pressure due to news that the silicon-carbide specialist is being sued for securities fraud. Wolfspeed stock is now down 79% this year.
Axios published a new report today covering challenges at Wolfspeed and investor dissatisfaction. The report chronicled the company's shift to focusing on silicon-carbide chips, devices, and materials and how the initiative had led to soaring debt. The report also noted that Wolfspeed had repeatedly issued downward guidance revisions, and that factory utilization at existing plants and the cancellation of expansions had caused many investors to lose faith in the business. Gregg Lowe resigned as the company's CEO last month, and the business is reducing its employee count by roughly 20%.
Source Fool.com
