Why Did Wolfspeed Stock Skyrocket 1,686.78% Today?

Core Viewpoint - Wolfspeed's stock experienced a dramatic increase of 1,686.78%, but this figure is misleading due to significant dilution from a restructuring process related to Chapter 11 bankruptcy [2][3][4]. Group 1: Stock Activity - Shares of Wolfspeed finished the day up 1,686.78% while the S&P 500 and Nasdaq Composite gained 0.3% and 0.5%, respectively [2]. - The company canceled all existing shares and issued new shares to satisfy creditors, with shareholders of the old stock receiving a maximum of 5% of the new shares [4][6]. Group 2: Share Dilution - Wolfspeed issued just under 26 million new shares at an exchange ratio of 0.0084, leading to severe dilution for existing shareholders [5][6]. - The actual increase in stock price, when accounting for the change in shares, was closer to 200%, not the reported 1,686.78% [7]. Group 3: Debt Restructuring - The company is undergoing a restructuring process to reduce its debt by 60%, which is a critical step in its bankruptcy proceedings [6].