Why Wolfspeed Stock Is Plummeting Today
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On the heels of a recent rally, Wolfspeed (WOLF -20. 83%) stock is getting hit with a round of big sell-offs in Wednesday's trading. The silicon-carbide specialist's price was down 13....
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July 9, 2025
12:36 PM
The Motley Fool
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On the heels of a recent rally, Wolfspeed (WOLF -20. 83%) stock is getting hit with a round of big sell-offs in Wednesday's trading
The silicon-carbide specialist's price was down 13. 7% as of 12:10 p
ET amid the backdrop of a 0. 2% gain for the S&P 500 (^GSPC 0. 61%) and a 0. 5% gain for the Nasdaq Composite (^IXIC 0
The stock had been down as much as 23% earlier in the session
While there doesn't appear to be any fresh news driving the big valuation pullback today, it's not surprising to see investors moving to take fits on the heels of the company's recent valuation run-up
The stock saw massive gains after it was announced that Gregor van Issum had been selected as the company's next CFO, and the rally may have been significantly overdone
Image source: Getty Images
Wolfspeed stock sinks as investors move to lock in recent gains Wolfspeed saw its stock more than double Monday after Gregor van Issum was named the company's next CFO, and gains for its price continued in yesterday's trading
Van Issum will be helping to lead the company through its Chapter 11 bankruptcy and restructuring, and news of his appointment corresponded with explosive gains for the stock
Van Issum's background suggests that he's a good fit to handle the company's financial restructuring, but the gains for the stock ing news that he would step into the role in September appeared to be significantly out of step with the significance of the news
What's next for Wolfspeed
Through its Chapter 11 bankruptcy and restructuring, the ownership of Wolfspeed's assets will be shifted in order to reduce debt and restore value to its creditors
As a result, a new company will be created -- and current holders of the company's common stock will only receive between a 3% and 5% stake in the new corporation
Additionally, there's a risk that Wolfspeed stock will soon be delisted from the New York Stock Exchange as a result of its bankruptcy filing
Keith Noonan has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Wolfspeed
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