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
- Ridley Scott Reveals He Turned Down $20 Million to Direct TERMINATOR 3
- The VIX Drop: A Contrarian’s Guide to Market Myths
- Baby Steps tips you need to know
- Global-e Online: A Portfolio Manager’s Take on Tariffs and Triumphs
- Northside Capital’s Great EOG Fire Sale: $6.1M Goes Poof!
- Zack Snyder Reacts to ‘Superman’ Box Office Comparison With ‘Man of Steel’
- American Bitcoin’s Bold Dip Dive: Riches or Ruin? You Decide!
- A Most Advantageous ETF Alliance: A Prospect for 2026
- WELCOME TO DERRY’s Latest Death Shatters the Losers’ Club
- Fed’s Rate Stasis and Crypto’s Unseen Dance
2025-07-23 21:43