On July 28, Core Scientific, Inc. fell 5.26% in regular trading, trading at $20.05/share, with turnover of $246 million. The stock had surged over 13% in pre-market trading before reversing sharply after the open.

On the news front, the company reported Q2 net loss of $3.32 per diluted share, dramatically missing analyst consensus estimates of a $0.06 to $0.10 loss, representing a massive deterioration from the $0.04-$0.08 per share loss in the year-ago quarter. Revenue of $164.2 million more than doubled year-over-year from $78.6 million and beat estimates of approximately $143-145 million, but the outsized loss overshadowed the top-line beat.

Simultaneously, the company announced a partnership with AMD to provide up to 2.5 gigawatts of data center capacity for AMD AI solutions, with over 500 megawatts beginning in 2027. AMD will receive market-priced warrants to purchase Core Scientific shares. While this news initially boosted pre-market sentiment, the enormous earnings miss raised concerns over expansion costs. Adding further pressure, Keefe, Bruyette & Woods downgraded the stock from Outperform to Market Perform the prior session, cutting its price target to $25 from $28.

(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.)