Credo Technology (NASDAQ: CRDO) stock was down on Wednesday after the data infrastructure company issued a warning.
Credo Technology warns in a filing with the Securities and Exchange Commission (SEC) that its largest customer has reduced its demand for the company’s products. According to the company, this change is not due to poor performance; it will maintain its market share with the customer.
As a result of this and macroeconomic headwinds, the company is providing new fiscal 2022 guidance. It expects revenue in the fiscal fourth quarter of the year to range between $30 million and $32 million. To put that in context, Wall Street predicts revenue of $58.29 million.
Adding to CRDO stock’s woes is its revenue forecast for the current fiscal year. The company anticipates flat revenue growth in the coming fiscal year compared to the current fiscal year.
What Does It Mean for CRDO Stock?
It’s no surprise that CRDO stock is down today as investors sell their holdings. As of this writing, 2.1 million shares have changed hands in response to the revenue warning. This is already more than the company’s daily average trading volume of 1.4 million shares.
In pre-market trading on Wednesday, CRDO stock is down 45.3%. It is also expected to fall further when it releases its following earnings report in April.
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