Why WhiteFiber Stock Is Plummeting Today

Core Viewpoint - WhiteFiber's stock has experienced significant volatility following its third-quarter earnings report, with a notable decline in share price despite some recovery momentum in the broader market [1][2]. Financial Performance - In Q3, WhiteFiber reported a loss of $0.47 per share on revenue of $20.2 million, which fell short of market expectations. The loss per share was $0.31 higher than analyst estimates, and revenue was approximately $1.8 million below expectations [4]. - Year-over-year, sales increased by 65%, but cloud services revenue growth of 48% was weaker than anticipated [4]. Market Reaction - Following the earnings report, WhiteFiber's stock price dropped by as much as 18% during trading, ultimately closing down 9.1% [1][2]. - Despite the sell-off, the stock has only increased by 6% since its IPO in August 2025 [2]. Future Outlook - The company is focused on expanding its support capacity for AI data centers and is evaluating multiple data center sites for future growth [5]. - WhiteFiber's current market capitalization is approximately $659 million, with a valuation of about 7.9 times this year's expected sales. There is potential for the valuation to appear cheap if aggressive sales growth continues, although uncertainty remains regarding future performance [5]. Investment Considerations - Investors are advised to consider the recent sales and earnings misses, as well as the strong sales growth that did not meet expectations for cloud services revenue [6]. - The stock has faced significant sell-offs but has shown some recovery, indicating mixed investor sentiment [6].