Wolfspeed (NYSE: WOLF) had been one of the hottest stocks in the market this spring, surging on hopes that it could become the next AI winner.
The rise coincided with a bullish report from Substack publication Citrini Research, which had earlier come into prominence after publishing a thought piece about how artificial intelligence (AI) would negatively impact software-as-a-service (SaaS) stocks, helping sink that sector.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, after its shares reached more than $80, Wolfspeed stock has come crashing back down to earth, retracing the big move it had made in May following Citrini pumping the stock. Its latest pullback coincided with another disheartening earnings report on Aug. 19.
Wolfspeed emerged from bankruptcy last fall, wiping out some expensive debt and finding itself on better footing. However, many of the issues that pushed it into bankruptcy in the first place remain. The chief among them is negative gross margins.
#signal #down
The rise coincided with a bullish report from Substack publication Citrini Research, which had earlier come into prominence after publishing a thought piece about how artificial intelligence (AI) would negatively impact software-as-a-service (SaaS) stocks, helping sink that sector.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, after its shares reached more than $80, Wolfspeed stock has come crashing back down to earth, retracing the big move it had made in May following Citrini pumping the stock. Its latest pullback coincided with another disheartening earnings report on Aug. 19.
Wolfspeed emerged from bankruptcy last fall, wiping out some expensive debt and finding itself on better footing. However, many of the issues that pushed it into bankruptcy in the first place remain. The chief among them is negative gross margins.
#signal #down
2 months ago
