BUZZ-AI data center company TeraWulf rebounds after third-quarter revenue beats expectations

November 6 - ** Shares of artificial intelligence data center developer TeraWulf (WULF.O) rose 10.1% to $11.10 in premarket trading on Friday after the company’s quarterly revenue exceeded Wall Street expectations

** WULF announced (link) third-quarter revenue grew 51% year-on-year to $76.2 million, including $63 million in high-performance computing leasing income, surpassing LSEG’s estimate of $61.79 million

** The company reported net income attributable to shareholders of $709.91 million in the third quarter, compared to a net loss of $455.05 million in the same period last year, benefiting from non-cash gains due to changes in the fair value of warrants

** The company reaffirmed its annual target of adding 250–500 megawatts of key IT capacity

** On Thursday, WULF shares plunged nearly 14% to their lowest point in over a year, as a sweeping Democrat victory in the U.S. midterm elections led to market concerns about increased regulatory scrutiny in the AI sector (especially regarding data center construction), causing AI-related stocks (link) to be hit hard (link)

** As of Thursday’s close, WULF shares were down 12% year-to-date, about 66% lower than their intraday high of $29.84 set on June 22

** Of 24 analysts, 8 rate the stock a “strong buy,” 16 rate it “buy”; the median price target is $30—LSEG

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