See Why this LED Stock is Getting Unscrewed 11%
LED (light emitting diode) stocks have been a hot momentum sector for traders and investors. Unfortunately, the sector has had the lights dimmed.
Today, Cree Inc. (NASDAQ:CREE) disappointed Wall Street when the company lowered guidance for fiscal Q3 revenue and margins on weaker-than-expected demand and pricing. That’s a major whammy for business. Cree expects revenues in the same range as last quarter ($245-$265 million) — another no-no on Wall Street.
Shares of CREE are down 11% to $43 as momentum players continue to run for the hills after bidding the stock up to $82 in August of 2010. Check out Cree’s Chart and Fundamentals at Wall St. Watchdog.
The LED sector has come under pressure as inventory levels in Asia have been correcting after a massive wave of buying. We’ll have to see if Japan (NYSE:EWJ) adds a catalyst in future quarters. Either way, the entire sector is getting unscrewed today as competitors Rubicon Technology, Inc. (NASDAQ:RBCN), SemiLEDs Corporation (NASDAQ:LEDS), Veeco Instruments Inc. (NASDAQ:VECO), and Aixtron AG (NASDAQ:AIXG) are all in the red.
Cree, Inc. develops and manufactures semiconductor materials (NYSE:SMH) and electronic devices made from silicon carbide. The Company uses proprietary technology to make enabling compound semiconductors such as blue and green light emitting diodes, SiC crystals used in the production of unique gemstones, and SiC wafers that are sold for device production and research.