Feb. 3 at 10:05 PM
Using post as a bookmark to revisit in 1m after
$CRDO reports its earnings:
$LITE was already up +18% YTD and just reported +25% q/q sales growth (vs +22% guided) and guided +10% q/q sales growth at the midpoint for next quarter. They also saw gross margin expand from 32% -> 43% y/y, showing the pricing power enjoyed from such a massive increase in demand. Shares popped +13% in initial reaction.
$CRDO is down now (-24%) YTD and nearly (-50%) from ATH despite belonging to the same "AI Plumbing" investment theme. They have also currently guided for +27% q/q sales growth at the midpoint.
Not even a pop in
$CRDO in sympathy in AHs on the
$LITE beat shows how offsides the market will be headed into earnings in my opinion.