Movement Alert|Cerebras Systems Falls 6.94% in Regular Trading, Stock Breaks Below IPO Price as Disappointing Margin Guidance Triggers Continued Selloff

Market Focus
Jun 25

On June 25, Cerebras Systems fell 6.94% in regular trading, trading at 168.74 USD/share, with turnover of $1.462 billion. The stock has now fallen below its $185 IPO price, with cumulative losses exceeding 25% since its first post-IPO earnings report.

The continued selloff stems from the company's first quarterly earnings released on June 23, which disappointed on profitability despite strong revenue. While Q1 revenue rose 94% year-over-year to $193.4 million and non-GAAP EPS of -$0.04 beat the -$0.16 estimate, the Q2 core gross margin guidance of only 36%-38% — far below industry leader NVIDIA — triggered widespread concerns about the company's commercialization path. The company also warned full-year margins would decline below Q1 levels, overshadowing its $20 billion-plus multi-year OpenAI partnership and revenue guidance that exceeded analyst forecasts.

Additionally, the Philadelphia Semiconductor Index fell 1.7% on the day, with broader tech sector weakness amplifying downside pressure on the stock as profit-taking accelerated.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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