Credo Technology Group Holding Ltd (CRDO) News & EventsCRDOCredo Technology Group Holding Ltd

Middle East Violence Escalation Weighs on Markets, Tech Stocks Under Pressure

Macro narratives of re-escalation of violence in the Middle East, surging oil prices, and rising bond yields continued to weigh on sentiment, sending major averages down for the third consecutive session.   Once again, Energy and defensively oriented Utilities and Health care sectors softened the brunt of impact on the benchmark, though Tech, Basic Materials, Industrials, and Cyclicals paced the prevailing bearish bias.  In Tech, Software stocks joined the AI CapEx build out areas of the market - semiconductors, memory, hardware, and equipment - with outsized losses.  Applewas a notable counterweight however, gaining nearly 3% on the day.In the opening hour of the evening session, index futures are trading little changed - S&P e-minis are at 7,643 and Nasdaq 100 is just north of 29,100.  In commodities, WTI crude oil crossed the upside of $90 per barrel, boosted by more bellicose rhetoric from President Trump regarding his intentions to continue bombing Iran if IRGC retaliates against the latest round of US strikes.  Precious metals also remain under pressure, as rising dollar from growing expectations of higher short-term rates sent Gold below $4,370 per ounce.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -GitLabup 15.9%Sportsman's Warehouseup 7.5%Dell Technologiesup 6.7%ALSO HIGHER -Waldencastup 9.6% after insider buyLineageup 1.8% after insider buyDOWN AFTER EARNINGS -MongoDBdown 12.9%Credo Technology Groupdown 9.2%Palo Alto Networksdown 1.8%

Company Expects 85% Total Revenue Growth for FY27

In its Q1 earnings call, the company states: "We continue to expect an inflection in the second half, driven by more than $600 million in optical revenue, with 400G optics, silicon photonics, and optical DSPs each contributing more than $100 million, resulting in more than 85% year-over-year total revenue growth for the full year, we expect. Non-GAAP gross margin in fiscal year 27 to be broadly consistent with fiscal year 26 levels, we expect non-GAAP operating expenses to increase approximately 55% year over year, well below our revenue growth rate as we continue to invest in R&D to support the new product development and address the significant growth opportunities ahead. As a result, we expect our non-GAAP net margin to be in the vicinity of 50%."

Sees Q2 Gross Margin at 67%-69%

Sees Q2 gross margin 67%-69%.