Why Is CREDO TECHNOLOGY GRO (CRDO) Stock Down Today?

CRDO stock fell 20.05% to $165.21 on Wednesday amid a sharp selloff following earnings. The decline came despite record revenue and raised guidance, as investors reacted to margin compression and broader market dynamics. The stock opened with an 8.5% gap down and continued to fall throughout the session, closing near its intraday low.

What Happened

Credo Technology reported first-quarter revenue of $479 million, a 114.7% increase year-over-year, and raised full-year guidance. Adjusted earnings per share came in at $1.20, exceeding estimates. However, the stock dropped 19% as the report highlighted declining gross margins, which raised concerns about the company’s ability to sustain profitability amid rising costs. The stock also broke below its 200-day moving average, a technical level often watched by traders and investors. Analysts remain generally bullish on long-term growth in optical infrastructure and hyperscaler demand, but the near-term selloff reflects skepticism about near-term margin pressures.

What The Data Shows

The stock opened at $189.00, a significant gap down from the prior close of $206.63. It reached an intraday high of $193.51 before declining to a low of $164.99. Volume was 11.8 million shares, 1.7 times the 3-month average. Over the past eight sessions, the stock has fallen 24.4%, from $222.61 to $168.32. Recent insider transactions show 21 sales totaling $136.4 million in the last 90 days, with no insider purchases. On the social front, there were five posts in 24 hours and six in seven days, with one Reddit mention. The stock printed 36 fresh 52-week lows on September 2, 2026, and one fresh high.

What To Watch

The stock is currently trading near its 52-week low of $86.48. Investors should monitor the company’s ability to stabilize margins and execute on its long-term growth strategy. Analysts will also be watching for any follow-up commentary from Evercore ISI Group, which recently lowered its price target to $292.