Today, shares of Wolfspeed (WOLF) are soaring in trading. By 2 pm ET, the stock had surged 24.3%, with even higher gains of up to 43.4% seen during the trading session.
It seems there isn’t significant industry-related news contributing to the company’s increased valuation today. However, the firm is progressing with a Chapter 11 bankruptcy and restructuring process. Interestingly, its stock has experienced notable growth due to speculative investments and meme-stock trading recently.
Today’s significant surge in stock price might indirectly relate to a Bloomberg Law report published on Monday, suggesting that shareholders engaged in a class action lawsuit against the company are aiming to invalidate immunity protections for former executives. Some investors might be wagering that legal developments could result in current shareholders benefiting from a more advantageous resolution when the company undergoes restructuring and a new corporation emerges.
Is Wolfspeed stock a buy right now?
It’s possible that Wolfspeed’s upward trend may persist in the short term, but investing in this stock is currently quite risky. The surge in the company’s share price seems to be largely due to the recent surge in meme-stock trades. However, with ongoing shareholder class action lawsuits and the company’s bankruptcy proceedings and restructuring still underway, it’s unlikely that these legal matters will bring significant benefits to the wider shareholder community.
Wolfspeed is progressing towards transferring crucial assets to eliminate debt, ensuring the business can carry on under a fresh corporate identity. As part of this restructuring process, existing shareholders of the common stock can expect to receive a stake worth between 3% and 5% in the newly formed company.
In simpler terms, due to the initial filing for bankruptcy protection, Wolfspeed’s stock may soon be removed from the New York Stock Exchange (NYSE). This is because the proposed restructuring seems unlikely to benefit shareholders, and delisting would make the stock a high-risk investment. Therefore, it might be unsuitable for all but those with a very high risk tolerance at this time.
Read More
- Gold Rate Forecast
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- Why Tesla Stock Plummeted 21.3% in the First Half of 2025 — and What Comes Next
- Why Are Nicki Minaj and SZA Really Beefing on X? Fans Left Wondering as Rappers Hurl Insults in Sudden Feud
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
- Genshin Impact 5.8 livestream: start times and where to watch
- Meta CEO Mark Zuckerberg Just Assembled a “Super Intelligence Avengers” Team That Could Totally Change the Game in Artificial Intelligence (AI). Here’s Why That Makes Meta a “Must-Own” AI Stock.
- KPop Demon Hunters Had a Kiss Scene? Makers Reveal Truth Behind Rumi and Jinu’s Love Story
2025-07-23 21:43