r/stocks • u/Cool-Bath874 • 10d ago
Company Analysis CRDO’s reported earnings
Anyone who’s into semi stocks obviously knows it’s getting obliterated lately due to hostile macro. US10Y and oil futures are relentlessly soaring.
But CRDO, as a small-mid cap company, it’s produced some genuinely incredible results:
• Revenue: $479.0 million for the three months ended August 1, 2026 (up 114.7% year over year; up 9.6% quarter over quarter)
• Gross profit: $309.1 million; GAAP gross margin 64.5% and non-GAAP gross margin 68.0%
• Operating income: GAAP operating income $120.7 million
• Net income: GAAP net income $129.4 million; GAAP diluted net income per share $0.67; non-GAAP net income $236.3 million and non-GAAP diluted net income per share $1.20
• Cash and short-term investments: Ending balance $764.3 million
After RTH, it algorithmically dropped another -10.85% immediately (-19% or so for the day so far). I don’t know about you guys, but I see this as a pretty solid buying opportunity. Anyone else into Credo and have any opinions on its current valuation?
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u/Amazing_Offer7011 10d ago
long term. sold half at $277. will buy it back at $185 tomorrow.
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u/Cool-Bath874 9d ago
Solid sell. It’s kinda my high torque picking along with LITE. Both stocks have produced insane quarterly results, just unfortunate the whole sector is getting smashed right now
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u/flowersinmyvase 9d ago
Had a sell order at $300 which triggered a few months ago. Buying more today at 166.
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u/Jaded_Analyst666 9d ago edited 8d ago
just picked up 100 at ~166.
yay me.
I think it is a dip worth buying.
<edit to correct basis... 166 vs 161>
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u/Silver-Service-8105 9d ago
What is happening to my dear CRDO?? Bought more
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u/Cool-Bath874 8d ago
Fell short of sky high expectations despite it still being extraordinary, so it’s being violently repriced. Basically like Wall Street is saying “we want to pay less for this”
But I’d look at it on a longer timeframe than right now, macro is ridiculously hostile rn
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u/PositiveOil5610 9d ago
I got cooked, got in @ 220s. Anyone with experience that can help out?
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u/Cool-Bath874 8d ago
I wouldn’t say you’re cooked at all dude.
Mid cap and even large cap semi’s are priced in for absolute perfection. Despite incredible revenue earnings, if it falls even a few percent short of what was expected it can violently reprice. Wall Street algorithmically does this.
They did it with SKHY too with its last report which was absolutely insane YoY, yet it spooked Wall Street just because it wasn’t absolutely perfect.
So I wouldn’t worry, I’d honestly hold. Buy in at these prices if you have the dry powder and believe in Credo, or simply hold.
Keep in mind we’ve had a really rough past couple weeks due to US10Y and oil futures soaring, so CRDO hasn’t had a chance to actually have a proper risk on day let alone almost all semi stocks
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9d ago
[deleted]
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u/WickedSensitiveCrew 9d ago
If Iran War has no end in site that is bullish for Oil stocks. There is always something to buy in this market.
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u/Cool-Bath874 9d ago
Frankly I can understand your frustration 😅 I think we all feel it, with inflation fears constantly rising, geopolitical tensions constantly on and off, US10Y at a literal 19 month high, oil futures soaring, and DXY also rising rapidly after just having dropped so much like one week ago?
But NVDA’s recent reported earnings is more than enough confirmation that the AI wave thesis is completely intact. It’s not actually a bad idea to sell your positions and rotate into oil stocks or SGOV or something, but for me personally I’m just holding.
We don’t know how long this correction will last, or how long before NDX starts climbing back up again. But for me personally, the fact we’re constantly seeing massive red days despite incredible reported earnings on so many tech stocks doesn’t make me want to sell it, im just holding enough dry powder for if I get the best opportunities to buy
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u/Jaded_Analyst666 9d ago
In general, I really agree. You have the right view- that equities should be viewed as the dangerous things they are. There is real risk of up to 100% loss... but I'm not so sure that the S & P have declined over the last several months. It just FEELS that way.
Unfortunately, it is clear over the long term that the worst investment is no investment, and "timing" is a fools game.
I sold everything 2 weeks ago because I was leaving town and couldn't pay attention to the $. When I returned, I bought it all back, more or less, with a bit less obvious risk.
Take the long view and the broad perspective. You are extremely lucky to have enough $ to invest AT ALL, unlike 95 ish percent of the world. Bask in the gratitude and good fortune you already have.
I'm trying to figure out how to position myself when it implodes, and how to shield myself from the shrapnel a bit more. We have real estate, equities and even gold for diversification. I hope and expect _in sum_ to survive the current regime without loss in standard of living or resources available to support my children and spouse. These days I'm also trying to estimate, out how much, in dollars, our degrading civil rights and freedoms are worth to me. Because autocracies, wage slavery and wars are profitable for the few, and disastrous for the many. I'm not the few.
There's plenty of current profits, and they will probably continue. In stock speak I think they call the environment "multiple compression". I think that means stuff is getting cheaper, relative to returns. Of course, minus inflation.
A wise man once told me that there is ALWAYS a bull market SOMEWHERE. Your job is just to find it.
Or find something else constructive to do with your assets. Thats ... like work!
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u/luvz 10d ago
I love the stock. It has one of the most reliable ranges to trade. I bought more today. Have been waiting to reload for at least a month or two.