Wolfspeed (WOLF) Stock Plummets Following Earnings Miss And Leadership Changes

Wolfspeed Inc WOLF shares dropped 24.2% to $3.35 on Friday after the company reported disappointing quarterly results and announced leadership changes.

What To Know: The semiconductor firm posted a non-GAAP loss of 72 cents per share, beating analyst expectations of a 77 cent loss, yet widening from last year's 62 cent loss. Quarterly revenue fell 7.6% year-over-year to $185.4 million, missing consensus estimates of $194.1 million.

Gross margins suffered due to underutilization costs tied to the ramp-up at its Mohawk Valley facility, which contributed $78 million in revenue—up from $28 million a year ago. GAAP gross margin fell to -12%, and non-GAAP gross margin dropped to 2%, reflecting continued pressure on profitability.

Despite financial setbacks, the company highlighted progress in strengthening its capital structure, including a $200 million ATM offering and nearly $192 million in tax refunds. Wolfspeed also appointed Paul Walsh and Mark Jensen to its Board to support restructuring efforts.

CEO Robert Feurle, who recently joined, emphasized the company's competitive edge in silicon carbide technology and its path to innovation. Longtime board member Stacy Smith announced he will not seek re-election.

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How To Buy WOLF Stock

By now you're likely curious about how to participate in the market for Wolfspeed – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Wolfspeed, which is trading at $4.43 as of publishing time, $100 would buy you 29.85 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, WOLF has a 52-week high of $30.86 and a 52-week low of $2.06.