Why Wolfspeed Stock Is Sinking Today
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S of Wolfspeed (WOLF -20. 55%) are sinking on Thursday, down 19. 9% as of 2:26 p. The fall comes as the S&P 500 (^GSPC 0. 27%) and Nasdaq Composite...
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investment
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July 10, 2025
02:54 PM
The Motley Fool
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S of Wolfspeed (WOLF -20. 55%) are sinking on Thursday, down 19. 9% as of 2:26 p
The fall comes as the S&P 500 (^GSPC 0. 27%) and Nasdaq Composite (^IXIC 0. 09%) rose 0. 1%, respectively
The sharp drop doesn't appear to be motivated by any specific news; rather, investors are shedding s after a major run-up over the past two weeks
Wolfspeed files for bankruptcy tection Late last month, the embattled chipmaker filed for Chapter 11 bankruptcy and will continue to operate through the cess
When it emerges from bankruptcy, Wolfspeed expects to have reduced its debt by 70% and its interest payments by 60%, giving the company some breathing room
From the announcement through Tuesday of this week, the stock skyrocketed more than 500%
It's more than natural for it to retreat after a run that
Image source: Getty Images
Wolfspeed also announced earlier this week that, effective Sept. 1, Gregor van Issum will join the company as its new CFO
Van Issum brings significant experience with strategic financing and transformation in the sector, which the company says aligns with its turnaround strategy
Rough waters are ahead While the news has been mostly positive for the past few weeks, I don't think it is enough
There are still too many hurdles ahead to recommend the stock, especially larger trends in its revenue -- it's shrinking -- as the electric vehicle industry it sells to sees its own issues
I believe this rally has more to do with hype than reality
Johnny Rice has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Wolfspeed
The Motley Fool has a disclosure policy.
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