Key Takeaways
- A $12 billion fund, Jericho Capital, nearly doubled its Core Scientific (CORZ) stake in Q2, while Howard Marks’ Oaktree cut call options on the stock by 47%.
- Core Scientific is down 44% since June 30 and trades at 4.6x forward sales, its lowest in the past year.
- Analysts expect revenue to more than double this year to $675 million, and their average target sits 138% above the stock.
- On TIKR’s numbers, Jericho has the better side of this trade, and Core Scientific’s report in early November is the next test.
Two big investors went opposite ways on Core Scientific in Q2. Jericho Capital Asset Management, which manages $12 billion, nearly doubled its stake, while Howard Marks’ Oaktree cut its bet by almost half.
That’s as of June 30, from each firm’s 13F for the quarter, filed Aug. 14 and still their latest. Since then, the stock has fallen 44%.
Jericho doubled down
Jericho held 22.88 million Core Scientific shares worth $586 million at June 30, up 95% from the quarter before. That made it 4.8% of its 13F holdings and its fifth-largest position.
Oaktree, which manages $183 billion, went the other way. It held call options on 4.99 million shares at June 30, down 47% from the quarter before, with a notional value of $128 million: around 2% of its 13F stocks and its eighth-largest position.
A 13F doesn’t show bonds or short positions, so Oaktree’s filing can’t say whether those calls stand alone.
Core Scientific kept making deals
Core Scientific hasn’t sat still since June 30. On July 28, it announced a partnership under which AMD will secure up to 2.5 gigawatts of data center capacity for customers running AMD’s AI chips, and AMD gets warrants to buy Core Scientific stock at market prices.
On Aug. 14, it closed its acquisition of Polaris DS for $444 million in cash. And on Aug. 27, it signed $600 million of committed credit facilities, which it expects to free up about $300 million of restricted cash.
TIKR tracks 22 analysts on Core Scientific. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Core Scientific, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Core Scientific’s Analyst Ratings
The numbers lean toward Jericho
Analysts expect Core Scientific’s revenue to more than double this year to $675 million, after it fell to $319 million in fiscal 2025, and to keep climbing from there:
The consensus has it at $1.73 billion by 2028, though only 13 analysts go out that far.
Yet the stock is the cheapest it’s been in a year. With no forward earnings on TIKR to price, Core Scientific is valued on forward sales, and it trades at 4.6x, against an 8.3x average over the past year and a peak of 13x in June:
The analysts’ average target has held up far better than the stock, too. At $31, it’s off its July 31 peak of $37 but still above the $27 of a year ago:
Over the same year, the stock fell from $22.90 to $12.51.
The 22 analysts covering it have targets from $16 to $47, and their average sits about 138% above Tuesday’s close.
Jericho’s bet looks better
Oaktree’s caution has a case. Core Scientific just spent $444 million in cash on Polaris, AMD’s warrants could add shares, and the Street’s lowest target, $16, sits only a few dollars above the stock.
Still, I’d take Jericho’s side of this trade. Analysts see revenue more than doubling this year, and the stock trades at just over half its average multiple of the past year.
That’s a lot of pessimism priced into a business the Street expects to grow this fast.
Jericho’s add looks bad against the 44% drop since June 30, but a 13F can’t say what Jericho paid, or whether it still holds every share.
Of course, Core Scientific has to deliver. Its Q3 report, expected in early November, will show whether this year is on track for analysts’ forecast, and the next round of 13Fs, due by Nov. 16, will show whether either firm changed course.
So what is Core Scientific stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
