Wolfspeed: Epic Short Squeeze Or Colossal Bust? Why I'm Buying Before Earnings

(6min)

Summary

  • Wolfspeed's stock has seen significant volatility, with potential for a major move up if upcoming earnings are positive.
  • Recent management changes and cost-cutting plans have sparked a short squeeze, with potential for further gains if earnings and guidance are favorable.
  • Despite long-term concerns, strong momentum and technical indicators suggest Wolfspeed could be a good buy before earnings for short-term gains.
  • This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More »
Money Saving Graph

J Studios

Thesis Summary

Wolfspeed, Inc. (NYSE:WOLF) has seen substantial one-day moves in the last month as shorts have been squeezed following some positive news.

With earnings due in a few days, we could potentially have a setup for the stock to explode

This is a high-risk/high-reward opportunity, which is exactly what I look for in my YOLO portfolio.

Joint the Pragmatic Investor today to get insight into stocks with high return potential.

You will also get:

- Weekly Macro newsletter

- Access to the End of The World and YOLO portfolios

- Trade Ideas

- Weekly Video

This article was written by

23.82K Followers

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WOLF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About WOLF Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on WOLF

Related Stocks

SymbolLast Price% Chg
WOLF
--