Why Credo Technology Stock Plunged 20% Today

Credo Technology's stock dropped 20% despite beating Q1 2027 earnings estimates with 115% revenue growth and 131% earnings growth. The decline was driven by concerns over high customer concentration (three clients account for 74% of revenue), elevated valuation multiples (59x trailing earnings), and high volatility (beta of 3.2), despite strong guidance for Q2.