Why Credo (CRDO) Stock Is Plunging Today - Credo Technology Group (NASDAQ:CRDO)

Credo Technology Group Holding Ltd's CRDO largest customer has reduced its demand forecast for certain Credo products for reasons Credo understands are unrelated to Credo's performance.
Credo does not expect its market share with the customer to remain intact.
Due to the reduction and macroeconomic headwinds, Credo now expects fourth-quarter revenue of $30 million - $32 million (consensus $55.1 million). Also, Credo expects flat FY23 revenue year-on-year.
From a projected low point in Q4 FY23 or Q1 FY24, Credo expects to see sequential growth during FY24.
Credo's long-term financial model remains unchanged. In addition, Credo is managing its operating expenses to support future revenue growth and profitability.
Credo believes fundamental technology trends in its industry remain consistent. Credo's customers and ecosystem partners continue to require increasing bandwidth, power efficiency, and collaborative problem-solving to meet their expected connectivity needs.
Based on Credo's customer and partner engagements, Credo remains enthusiastic about the prospects and growth opportunities for its connectivity solutions.
Price Action: CRDO shares traded lower by 44.90% at $10.69 on the last check Wednesday.

Credo Stock Loses Half Its Value - Why Is It Plunging Today