CORZ Stock Forecast & Price Target

Core Scientific is demonstrating strong financial performance with a significant revenue increase, reporting a remarkable 700% year-over-year growth to reach $1.92 billion in 2024, driven primarily by major customers Microsoft and Meta. The company enjoys healthy profit margins of 62%, contributing to an EBITDA increase to $128 million, reflecting improved operational efficiency and strategic investments in high-performance computing infrastructure. Furthermore, the planned expansion of its compute capacity to 1.3 GW and the successful leasing of additional HPC capacity highlight Core Scientific's ability to capitalize on growing demand in the digital asset mining and high-performance computing sectors.

Core Scientific Inc.'s financial outlook is negatively impacted by a significant 33% year-over-year decline in total revenue, amounting to $94.9 million in Q4, primarily driven by a 29% decrease in digital asset self-mining revenue despite a 130% increase in bitcoin prices. The company also reported a substantial net loss of $265 million, attributed to market-to-market adjustments and escalating general and administrative costs, which further strained profitability and operating margins. Additionally, the shift towards high-performance computing (HPC) has not yet translated into significant revenue increases, as evidenced by reduced digital asset hosting revenue and lower gross margins from the Austin data center due to maintenance-related expenditures.