How Much Could You Lose In Credo Stock? Trefis Team Wed, November 11, 2026 at 8:12 PM EST 4 min read CRDO +6.59% ^GSPC +1.31% MRVL +7.18% AVGO +6.39% ALAB +4.35% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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For anyone holding Credo Technology (CRDO), the worry is what a market sell-off would do to a stock that closed 57.1% below its June 22 high on November 10. The company has released no new results since September 1, and over the past month alone, the shares lost 35.4%, compared with a 3.6% decline for the S&P 500. So when markets have turned before, how far did Credo stock fall, and how long did it take to get back?
Credo Stock Has Fallen Deeper Than The Market
Credo stock's largest fall in a market shock came in the 2023 banking crisis, when it lost 62.0% while the S&P 500 fell 6.7%. That fall includes a one-day drop of 35% or more in the share price on February 15, 2023. The S&P 500 rose that day, so the market did not share that drop. In the 2025 US tariff shock, which had no such one-day drop, Credo fell 53.6% against 19.0% for the S&P 500.
Across all five market shocks it has traded through since it listed in January 2022, Credo fell 36.0% on average, against 11.9% for the S&P 500 over the same days, measured on the SPY fund that tracks it. Each time, the stock got back to its earlier high. The median recovery took 2.0 months from the low, and the slowest, after the 2022 inflation shock, took 8.5 months. The current fall has gone further: at its November 5 close, Credo stock was 62.9% below its June 22 close, deeper than in any of those shocks. By its November 10 close, the fall had eased to 57.1%.
Credo Is A Much Larger, Profitable Business Today
Credo generated $1,591 million in sales over the four quarters ending August 1, 2026, marking a 165.1% increase from a year earlier. The company posted a 31.7% operating margin over those twelve months. That compares with 18.7% a year before and an operating loss two years ago. In fiscal Q1 2027 alone, however, the operating margin came in at 25.2%, dropping below the 27.2% reported in the same quarter a year earlier.
On August 1, 2026, Credo held $26.2 million of debt alongside $764 million in cash and short-term investments. This cash total was $679 million lower than a quarter earlier, mainly because of what the company paid to acquire Dust Photonics, management said.
Where Credo's Business Is Under Strain Now
Management said on Credo's September 1 call that cash from operations fell to $90.2 million in fiscal Q1 2027. The $92 million drop from the prior quarter occurred mainly because of changes in working capital, management said. Inventory climbed by $62.2 million during the quarter to reach $313.1 million, and management said the company is leaning in on supply so it can ship higher volumes in the second half.
Credo also sells to a small group of buyers. Management said on the same call that the largest customer accounted for 33% of revenue, while the second largest accounted for 28%.
Management still expects revenue to pick up in the second half of fiscal 2027, driven by more than $600 million of optical revenue. The company tied only its next-quarter guidance to a tariff regime that it called fluid, and management said the second-half pickup would lift full-year revenue growth above 85%.
Profit on each sale is also slipping. Credo's GAAP gross margin fell to 64.5% in fiscal Q1 2027 from 68.2% in the previous quarter. Management guided fiscal Q2 GAAP gross margin to a range between 62.9% and 64.9%, placing the midpoint below the fiscal Q1 result. Credo is expected to report its fiscal Q2 2027 results in December 2026, and its GAAP gross margin is the measure to watch then.
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