- Cree shares dropped 8% as investors were disappointed with quarterly results.
- While EPS beat, guidance disappointed and gross margins were lower than hoped.
- Lower gross margins are not problematic because Cree is seeing outsized growth in its bulb business, which is a lower margin business.
- LED lighting is a major growth market, and Cree will generate substantial growth for years to come. Shares are cheap at current levels. Read more» Read the article»