Shares of Credo Technology (NASDAQ: CRDO) collapsed in today’s trading session, which can be attributed to reduced demand from its largest customer. Unsurprisingly, this has had a material impact on the firm’s revenue guidance. Indeed, Credo now expects sales to come in at a range between $30 million to $32 million for its fourth quarter of Fiscal Year 2023. For reference, consensus estimates were expecting over $45 million.
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Credo stated that the reduction in demand was the result of macroeconomic headwinds as opposed to dissatisfaction with its services. However, this did little to please investors.
In fact, a look at the past five trading days shows the level of carnage that shareholders have had to endure, as CRDO stock has shed over 40% of its value.
