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Wolfspeed Stocks Tumble: A Closer Look

Jack KelloggAvatar
Written by Jack Kellogg
Updated 9/18/2025, 5:04 pm ET | 6 min

In this article Last trade Oct, 10 7:42 PM

  • WOLF-11.24%
    WOLF - NYSEWolfspeed Inc. New
    $31.44-3.98 (-11.24%)
    Volume:  5.46M
    Float:  154.91M
    $29.50Day Low/High$36.40

Wolfspeed Inc. stocks have been trading down by -8.82 percent amid strategic shifts in technology partnerships affecting market confidence.

Candlestick Chart

Live Update At 17:03:39 EST: On Thursday, September 18, 2025 Wolfspeed Inc. stock [NYSE: WOLF] is trending down by -8.82%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

A Look at Wolfspeed’s Financial Health

In the unpredictable world of trading, it’s essential to stay grounded and not let impulsive decisions dictate your actions. Patience and strategy often yield the best results. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” Recognizing the value of waiting for the right opportunity can make all the difference in your success as a trader.

It’s been a turbulent ride for Wolfspeed lately, with numbers raising eyebrows among investors and analysts alike. Not surprisingly, revenue sat at approximately $757.6M, signaling a downward shift that caught many by surprise. The glaringly negative gross margin of -16.1% casts shadows of uncertainty.

Eyes are on the company’s profitability indicators, with the pretax profit margin sinking to -88.3%. In simpler terms, Wolfspeed is spending more than it’s making—a red flag for any business. This downtrend was apparent in their quarterly and annual performance, as observed in the reported net loss from ongoing operations, which further shook investor confidence.

Even the price-to-book ratio stands at a frustrating -0.86, hinting at serious issues in Wolfspeed’s valuation on the stock market. The company’s ability to manage its finances currently seems limited, given its quick ratio scrapes at a mere 0.2. This low figure suggests potential trouble covering short-term liabilities, an unsettling notion for shareholders.

Market behavior echoed these sentiments, as the stock gradually descended to a disappointing close of $2.46 after slipping from a higher previous day mark. A distinct disconnect between past gains and future prospects seems to be in motion, prompting concerns around possible asset devaluation and depreciation—a common concern during financial uncertainty.

The insights gathered from their balance sheets don’t paint a rosy picture, as cash reserves dwindle. With operating cash flow at a negative $242.5M, sources of immediate relief seem minimal. It’s no wonder the asset impairment charges catapulted to such high figures, shocking even the most seasoned market observers.

Impact of News on the Stock Price

When Wolfspeed stepped forward with its latest financial reports, there was a collective intake of breath from the analyst community. The news spread quickly, with digital news platforms abuzz analyzing the surprising downturn that hadn’t shown signs of reversing in recent disclosures.

Notably, the missed earnings predictions left a bitter aftertaste. Consider the asset impairment charge which saw drastic elevations, positioned at over $357.9M. This certainly intensified the market’s scrutiny over Wolfspeed’s management strategies during this challenging fiscal period.

Revenue decline doesn’t just appear in a vacuum; it’s entrenched within operational strategy, market conditions, and sometimes unplanned expenditures. For Wolfspeed, the stark increase in operating expenses certainly complicated the landscape. Each time the company outlined another deductive line item, it added more weight to its financial woes.

Many were keenly focused on the reported operating losses, which resulted from a mix of hairpin revenue declines and a spike in costs, highlighting management challenges that could potentially unsettle the shareholder community further.

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Market Implications and Strategic Directions

The pathway forward for Wolfspeed isn’t entirely clear-cut. Given the scale of its setbacks, some might suggest a potential strategy overhaul, possibly re-evaluating the segments responsible for burgeoning costs or underperformance.

Critically, the negative gross margins evident in the latest financial results indicate underlying inefficiencies, perhaps in supply chain or overhead management. Simplifying operations or re-negotiating supplier contracts might be some considerations on the table, should leadership lean towards a more responsive and decisive approach.

Assessing stock performance over recent days pointed consistently towards declining trader confidence. With figures painting a bleak picture, the challenge remains — can Wolfspeed navigate this financial labyrinth and emerge stronger or will the weight of past financial missteps burden the turnaround efforts?

Ultimately, the eyes of the trading world are tracking Wolfspeed closely. For traders and market watchers, the performance of Wolfspeed’s stocks in the immediate future will likely speak volumes about the company’s ability to realign its strategies and quell the rippling undercurrent of concern. As market psychology suggests, sometimes stocks can rise out of sheer unpredictability if a careful and calculated strategy for recovery unfolds over time. As millionaire penny stock trader and teacher Tim Sykes, says, “Be patient, don’t force trades, and let the perfect setups come to you.” This mindset could be instrumental in approaching Wolfspeed’s current challenges, suggesting that hasty or forced decisions might not be the best path forward.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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In this article (YTD Performance)


* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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