(Cree and Semileds article updated with analyst commentary from Morgan Stanley, Canaccord Genuity analysts.) NEW YORK ( TheStreet) -- Shares of Taiwanese LED company Semileds ( LEDS) are down more than 17% early on Tuesday after its second straight earnings miss and an outlook about LED market pricing and margins that remains weak and implies a miss next quarter as well. It's the second straight quarter -- and the second earnings since the company went public -- that Semileds had posted an earnings disappointment. Shares are down 50% this year. The LED market has been under intense pricing pressure due to an inventory glut, which has hit shares of LED bellwether Cree ( CREE) hard. Cree recently had to take down its revenue guidance for the upcoming quarter, stating that the inventory glut was taking longer to work through than the company had predicted. While the businesses of Semileds and Cree are distinct, signs of pricing pressure and gross margin weakness in the LED market are a surface negative for the entire industry when reported by Semileds. Cree was also down by Morgan Stanley on Tuesday morning to a sell. Cree shares, which already fell to a new 52-week low last month with the revenue guide down, were down by 4% on Tuesday morning in early trading and reached near average daily trading volume within an hour of the market open. Semileds revenue for the second quarter was $10 million and a loss of 5 cents per share. The consensus was for revenue of $11.5 million and earnings of 8 cents.