Core Scientific stock price has retreated and remains in a bear market after falling by over 28% from its highest level in November as Bitcoin continued falling. CORZ was trading at $16.9 on Friday as traders focused on the upcoming corporate earnings.
Core Scientific to Publish Earnings on Monday
The CORZ stock price has crashed into a technical bear market as traders reacted to the ongoing Bitcoin price crash and the retreat of most data center companies like CoreWeave, Nebius, Mara Holdings, IREN, and Bitfarms.
Core Scientific, which CoreWeave attempted to buy last year, will publish its results after the market closes on Monday. These numbers will provide more information about its revenue growth and progress on its AI data center business.
The most recent results showed that the company’s revenue retreated to $81.1 million, down from $95.4 million in the same period last year. This retreat happened as its self-mining revenue dropped to $57.4 million, while its hosted mining revenue fell to $8.7 million.
CoreWeave attributed the latter’s decline to the strategic shift from Bitcoin mining to data center solutions.
The results also showed that the high-density colocation revenue rose from over $10 million to $15 million. Additionally, the company’s net loss narrowed to $146 million from $455 million previously.
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Wall Street analysts believe the company’s business improved in the fourth quarter, with continued growth in the data center segment. The average estimate is that its revenue rose by 22% in the fourth quarter to $115 million, bringing its annual figure to $350 million. This figure will grow to over $164 million in the current quarter.
Analysts also expect that its annual revenue will surge to $770 million, while its earnings per share (EPS) will improve to 25 cents from the expected $3.55 last year.
Still, a key concern is that, while data center spending is expected to keep rising in the coming years, the colocation industry has become saturated, with most Bitcoin mining companies entering the business.
CORZ Stock Price Technical Analysis
The daily timeframe chart shows that the CORZ share price bottomed at $13.40 in December last year and is currently at $16.9.
A closer look shows that the stock is stuck at the 38.2% Fibonacci Retracement level. It has also formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis.
Therefore, the stock will likely break down sharply after its earnings report this week. If this happens, the next key level to watch will be the psychological $15 level, down 11% from the current level.
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