Latest news with #Wolfspeed
Yahoo
4 days ago
- Business
- Yahoo
Is Wolfspeed an Underrated Buy or Just Another Meme Stock?
Key Points Wolfspeed has experienced a surge in trading activity after filing for bankruptcy protection. The company has a new CFO with experience in turnarounds, resulting in some excitement around the stock. However, Wolfspeed's abysmal margins suggest that a turnaround for the business won't be easy. 10 stocks we like better than Wolfspeed › Wolfspeed (NYSE: WOLF) has been one of the most volatile stocks on the market this year. As of Monday's close, it was down around 80% since the start of the year, and in the early stages of Chapter 11 bankruptcy proceedings. Yet, despite seemingly atrocious returns and no shortage of headwinds, investors have been buying up the stock in the early part of July. The company, which refers to itself as "pioneers of silicon carbide, and creators of the most advanced semiconductor technology on earth," has amassed losses totaling more than $1.1 billion over the past four quarters. However, it has brought on a new chief financial officer with an extensive track record of transforming and restructuring businesses, which has made investors bullish on its ability to turn things around. Could Wolfspeed be an attractive stock to buy on weakness, or has it simply become the latest meme stock? Wolfspeed's trading volumes have spiked On June 30, Wolfspeed said it would be taking steps to strengthen its capital structure, which include filing for Chapter 11 bankruptcy. The company hopes to reduce its debt by $4.6 billion (70%). The business believes it will "be better positioned to execute on its long-term growth strategy and accelerate its path to profitability." While a bankruptcy filing is not great news for a business, it has resulted in a spike in Wolfspeed's trading volumes. From June 30 through to July 8, the tech stock surged by a staggering 530%. A new finance leader gives investors some hope Another positive catalyst for the stock was news that it was appointing Gregor van Issum as its new chief financial officer, which the company announced on July 7. It notes that van Issum has "more than 20 years of experience in transformational restructuring and strategic financing positions across the technology industry." Having an experienced leader to help turn around the business is good for the company, but that doesn't necessarily mean it's going to be smooth sailing from here on out. The big problem: Wolfspeed's gross margins need drastic improvement. In the company's most recent quarter, which ended on March 30, even its adjusted gross margin percentage (after factoring out stock-based compensation and restructuring costs) was minuscule at 2%. Even if the company reduces its debt load, its fundamentals are a big concern. Wolfspeed has incurred steep net losses, and it has burned through $709 million in the trailing 12 months over the course of its day-to-day operating activities. There are a lot of problems with the business, and a turnaround won't be easy, regardless of who's in charge. Wolfspeed is an incredibly risky stock to buy Existing Wolfspeed shareholders will only receive between 3% and 5% of the new restructured company. Even if its debt load is significantly reduced, the fundamental issues around its abysmal gross margins make it highly unlikely that the business will be worth investing in once the restructuring is complete. Wolfspeed resembles more of a high-risk meme stock than a company worth investing in today. While it may experience short-term gains, there are far better options for growth investors to consider. Should you invest $1,000 in Wolfspeed right now? Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,072% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 David Jagielski 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. Is Wolfspeed an Underrated Buy or Just Another Meme Stock? was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
Wolfspeed Soared Today -- Is the Stock a Buy?
Key Points Wolfspeed stock jumped in a daily session that saw big positive momentum for semiconductor stocks. The silicon-carbide specialist's volatile stock may have gotten a boost from some big news regarding Nvidia, but its outlook is risky for investors. Wolfspeed is going through a bankruptcy and restructuring process, and investors should be very careful with the stock right now. 10 stocks we like better than Wolfspeed › Wolfspeed (NYSE: WOLF) stock posted substantial gains in Tuesday's trading. There wasn't any new, business-specific news pushing the silicon-carbide specialist's valuation higher, but its share price gained 8.4% today thanks to speculative momentum, chip industry news, and investors gambling on the company's bankruptcy proceedings. The stock had been up as much as 22.9% early in the day's trading. Wolfspeed announced at the end of June that it had submitted filings for restructuring under a Chapter 11 bankruptcy. Despite a very risky outlook for the company's stock, its share price is up 273% since its bankruptcy announcement. Is Wolfspeed stock a buy? Wolfspeed stock has been incredibly volatile in recent trading, and it's been prone to large moves on little or no business-specific news. Tech stocks saw bullish momentum today after Nvidia announced that it had received assurances that the U.S. government would greenlight licensing approval needed to sell the company's H20 processors in China. Gains for Nvidia and other AI chip stocks following news about licensing approval for the H20 processors don't suggest any meaningful shift in Wolfspeed's prospects as an investment. Wolfspeed is a company that's in the early stages of moving through bankruptcy proceedings. Companies that are starting bankruptcy procedures can sometimes see huge valuation moves even in the absence of relevant developments, but the likely outcome is generally unfavorable for investors trying to make ultra-short-term plays at this stage. Wolfspeed's bankruptcy and restructuring makes it likely that the stock will be delisted from the New York Stock Exchange, and investors who hold on to shares through the restructuring process will receive only between 3% and 5% of the value of the new company. With these risks in mind, Wolfspeed stock is too shaky to be a good investment right now. Should you buy stock in Wolfspeed right now? Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Keith Noonan 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. Wolfspeed Soared Today -- Is the Stock a Buy? was originally published by The Motley Fool
Yahoo
7 days ago
- Business
- Yahoo
Wolfspeed (WOLF) Refreshing Management Team to Revitalize Growth
Wolfspeed, Inc. (NYSE:WOLF) is one of the best green energy penny stocks to buy right now. On July 7, the company confirmed the appointment of Gregor van Issum as Chief Financial Officer, effective September 1, 2025. A fleet of electric light vehicles recharging their batteries in a parking lot. The appointment comes at a time when the company is facing significant financial challenges. Nevertheless, Van Issum will join with over 20 years of experience in the semiconductor industry and is expected to play a role in revitalizing the company's fortunes. 'My priority will be providing Wolfspeed's investors with transparency and clarity, especially during this transformative period,' van Issum said. The appointment coincides with the addition of Dr. David Emerson, who took over as Chief Operating Officer in May. Wolfspeed is increasingly refreshing and bolstering its management team as it looks to unlock new growth opportunities. Wolfspeed, Inc. (NYSE:WOLF) is a semiconductor company that specializes in silicon carbide technologies used in various applications, including power modules and discrete power devices. Its products are used in multiple applications, including electric vehicles and renewable energy. While we acknowledge the potential of WOLF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Most Popular AI Penny Stocks to Buy According to Billionaires and 10 Best Defensive Stocks to Buy in a Volatile Market. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
Why Wolfspeed Stock Plummeted 94% in the First Half of 2025 -- and What Comes Next
Wolfspeed stock saw huge sell-offs across the first half of the year as its financial outlook worsened. The company issued disappointing sales guidance for its next fiscal year, and it did not receive the CHIPS Act funding that had been anticipated. Wolfspeed's share price has seen a big bounce early in this year's second half, but the stock could be headed for another collapse. 10 stocks we like better than Wolfspeed › Wolfspeed (NYSE: WOLF) stock saw massive sell-offs across the first half of this year's trading. The company's share price fell 94% across the first six months of 2025, according to data from S&P Global Market Intelligence. The valuation collapse occurred despite a 5.5% gain for the S&P 500 index across the stretch. Wolfspeed stock saw big pullbacks in conjunction with poor quarterly results, a weakening sales outlook, and rising expectations that that the company would file for bankruptcy. The silicon-carbide specialist did submit preliminary filings for Chapter 11 bankruptcy protections at the end of June. Wolfspeed's share price saw fluctuations that amounted to relatively little cumulative movement up until March -- when news hit that prompted huge selling action. For starters, the company announced that it was planning on cutting its capital expenditures (capex) for the next fiscal year by between $150 million and $200 million. It also said that it was aiming to cut capex for the fiscal year after that by between $30 million and $50 million. The cost-cutting move suggested that the silicon-carbide specialist was cutting back on growth initiatives and raised red flags among investors. Later in the month, the stock got hit with an even bigger bearish catalysts. Reports began to circulate that the $750 million in CHIPS Act funding that had been apportioned to the company through the bill would not be distributed due to policy shifts from the Trump administration. Wolfspeed has a large debt load and was looking at the CHIPS Act as a major source of funding, and news that the capital would not be arriving on the expected schedule prompted a big sell-off for its stock. Wolfspeed stock got hit with another round of big sell-offs in May when the company reported results for the third quarter of its 2025 fiscal year, which ended March 30. While the company reported a loss per share that was lower than Wall Street had anticipated, its sales for the period came in lower than anticipated. While the sales miss in fiscal Q3 was disappointing, the real kicker was management's revised guidance for the next fiscal year. Wolfspeed said that it now expected sales of roughly $850 million for the period, falling far short of the average Wall Street analyst estimate's call for sales of roughly $959 million in the period. The news added to concerns that Wolfspeed was heading for bankruptcy, and the company finally filed submitted preliminary Chapter 11 filings on June 30. Wolfspeed stock has actually had a big recovery really early in this year's second half. The surge for the company's valuation kicked off when the silicon carbide specialist announced that it was filing for preliminary Chapter 11 bankruptcy protections at the end of June. The bullish rally picked up even more steam after the company announced that Gregor van Issum would be its next chief financial officer. The stock is now up 260% in the second half of the year, but the gains could be unsustainable. Due to the company's bankruptcy filings, there's a large probability that the company's stock will be delisted from the New York Stock Exchange in the very near future. Wolfspeed shares will likely continue to trade over the counter, but there's a huge risk that its stock price will plummet upon delisting. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Keith Noonan 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. Why Wolfspeed Stock Plummeted 94% in the First Half of 2025 -- and What Comes Next was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
14-07-2025
- Business
- Yahoo
Wolfspeed (WOLF) Refreshing Management Team to Revitalize Growth
Wolfspeed, Inc. (NYSE:WOLF) is one of the best green energy penny stocks to buy right now. On July 7, the company confirmed the appointment of Gregor van Issum as Chief Financial Officer, effective September 1, 2025. A fleet of electric light vehicles recharging their batteries in a parking lot. The appointment comes at a time when the company is facing significant financial challenges. Nevertheless, Van Issum will join with over 20 years of experience in the semiconductor industry and is expected to play a role in revitalizing the company's fortunes. 'My priority will be providing Wolfspeed's investors with transparency and clarity, especially during this transformative period,' van Issum said. The appointment coincides with the addition of Dr. David Emerson, who took over as Chief Operating Officer in May. Wolfspeed is increasingly refreshing and bolstering its management team as it looks to unlock new growth opportunities. Wolfspeed, Inc. (NYSE:WOLF) is a semiconductor company that specializes in silicon carbide technologies used in various applications, including power modules and discrete power devices. Its products are used in multiple applications, including electric vehicles and renewable energy. While we acknowledge the potential of WOLF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Most Popular AI Penny Stocks to Buy According to Billionaires and 10 Best Defensive Stocks to Buy in a Volatile Market. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
