Shares of Cerebras Systems Inc (NASDAQ:CBRS) are down 15.9% at $220.31 before the open, despite the AI chipmaker reporting a narrower-than-expected second-quarter loss of 5 cents per share and raising its full-year guidance, as revenue of $180 million missed estimates of $194 million. Several Wall Street firms adjusted their price targets in both directions following the report.
Today's drop threatens to erase much of CBRS' recent momentum. The shares entered today up 31.9% in August after rebounding sharply from their late-June lows, though they remain well below their May post-IPO high of $386. Should these losses hold, the stock will have suffered double-digit post-earnings declines following both of its quarterly reports as a public company.
Short interest could lead to more volatility. The 12.90 million shares sold short account for 14.1% of Cerebras stock's available float, representing nearly three days' worth of potential buying power.
The majority of analysts are bullish on CBRS. Of the 11 in coverage, nine carry a "buy" or better rating, with two a tepid "hold."
