Long-Term Promise, Short-Term Queasiness
Investors in LED-product maker Cree are used to volatility. But even so, the 14.5% drop in the stock price Wednesday following a disappointing earnings report must have left some with queasy stomachs. However rattled they may be feeling after such a hard fall, many Cree supporters remain unshaken in their faith. LED’s, or light-emitting diodes, not only power television screens, smartphone displays, dashboard lights and market tickers, they are increasingly being used as a low-cost and more energy efficient alternative to incandescent lights on outdoor streets as well as inside buildings and homes.