Credo Technology Group Holding Ltd (CRDO) shares plummeted 11.54% in after-hours trading on Monday, marking a significant 24-hour decline.

The steep drop occurred following the release of the company's fiscal fourth-quarter financial results, which exceeded analyst expectations for both earnings and revenue. However, the stock faced heavy selling pressure as investors locked in profits after a substantial multi-day rally and expressed concerns over a potential slowdown in growth momentum.

Despite the earnings beat, the company's first-quarter revenue guidance, while above consensus estimates, implied a deceleration in both year-over-year and sequential growth rates compared to previous quarters. This, coupled with elevated investor expectations built into the stock's recent surge, led to a wave of disappointment and profit-taking in the extended session.