:Credo Technology Group Holding shares nearly halved in value on Wednesday after the supplier of electric cables to data centers said its biggest client has cut orders and forecast quarterly revenue well below Street expectations.
Credo had in its second quarter ended Oct. 29 garnered 44 per cent of its revenue from its biggest client, according to a regulatory filing. Although Microsoft expects its third-quarter cloud infrastructure spending to be higher than the prior one, latest earnings from tech giants showed the pandemic-led cloud boom was easing as businesses cut costs due to high inflation.
At least five brokerages cut their price target on the stock. Cowen and Co slashed it the most by $7 to $11 and downgraded the stock to"market perform" from"outperform".