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Core Scientific Acquisition Sparks Uncertainty

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Written by Timothy Sykes
Updated 7/8/2025, 5:04 pm ET 6 min read

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  • CORZ-0.30%
    CORZ - NYSECore Scientific Inc.
    $13.39-0.04 (-0.30%)
    Volume:  254229
    Float:  293.65M
    $13.21Day Low/High$13.49

On Tuesday, Core Scientific Inc. stocks have been trading down by -5.53 percent amid regulatory concerns and market volatility.

Core Scientific’s Big Announcement

  • Shares of the major player in data infrastructure, Core Scientific, took a nosedive by over 16% following news of a $9B all-stock acquisition deal with CoreWeave. Investors seem wary as they get set to own less than 10% of the new entity.
  • Contrary to market hopes, Oppenheimer downgraded Core Scientific from an “Outperform” rating to “Market Perform,” further fanning the flames of uncertainty in the stock’s ebb and flow.
  • Core Scientific’s stock struggled to maintain ground and fell again, registering a daunting 17.2% premarket slide after word spread about their diminished control in the new structure.
  • The news that Core Scientific shareholders would receive CRTW shares valued at only 0.1235 per share caused the stock to plummet, leaving many investors grappling to determine the stock’s future journey.
  • Roth Capital also downgraded Core Scientific to “Neutral” from “Buy,” setting a price target of $20 amid a -17.17% stock price tumble.

Candlestick Chart

Live Update At 17:03:34 EST: On Tuesday, July 08, 2025 Core Scientific Inc. stock [NASDAQ: CORZ] is trending down by -5.53%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

A Dive into Core Scientific’s Recent Financials

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Core Scientific’s earnings report was a mixed bag of surprises and challenges. Peeking into the numbers reveals a whirlwind of changes. In recent months, the closing stock price wobbled around $14.20, after opening at about $15.50. This dramatic decline marks a steep downside from a high of $18, signaling a broader pattern of instability.

With a gross margin of 12.6% and a notably negative net profit margin hovering around -229.98%, the company’s struggles became glaring. Investors found little comfort in these metrics. The ebitda margin also trudged deep into red ink at -150.9%. Revenue trends over three years pointed to a decrease, a development unlikely to win investor hearts.

Leaping into the key financial ratios, the company’s pricetobook was alarmingly pegged at -24.33. Meanwhile, the enterprise value stood at about $49.13B, giving a whiff of the underlying potential amidst the turbulence. Their long term debt was recorded at $1,166M, posing formidable challenges on the debt management front.

More Breaking News

When it comes to the income statement, the dark lines were stark. Core Scientific reported a dazzling net income from continued operations of $580M, alongside some positive indicators like a basic EPS of 1.44. On the other hand, operating cash flow remained negative, painting a patchy picture of the cash landscape.

Navigating the Acquisition Turmoil

Amidst the previous spikes and twirls, the fresh acquisition announcement by CoreWeave catapulted Core Scientific into tricky territories. A $9B all-stock offer appeared palatable on paper but brewed anxiety among stakeholders afraid of diluted ownership. Post-acquisition, shareholders will control less than 10% — a significant reduction charting precarious roads for Core Scientific’s stock vision.

Potential investors raised eyebrows at future trajectories, particularly with news of mixed downgrades. Oppenheimer’s shift from an “Outperform” rating held implications, unearthing underlying tensions surrounding Core Scientific’s position in this ever-evolving narrative.

Peering deeper, the announcement affected all stakeholders involved. Famed for impactful data infrastructure, Core Scientific prides itself on vast networking capabilities but faces a monumental challenge in rekindling investor trust amidst this monumental transition period.

Prospects and Plights

Predicting Core Scientific’s future remains a delicate dance of interpreting recent trends, significant fluctuations, and uneven seas that the company navigates. This acquisition transforms familiar pathways into uncharted destinies.

Opportunities lie in addressing the concerns the new amalgamation invites. If effectively harmonizing operations and capitalizing on CoreWeave synergies, Core Scientific could, interestingly, maneuver a return to market favor. However, the broader vision hinges on balancing the intricate art of adaptation amidst these stormy tempos.

As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This insight emphasizes that while Core Scientific navigates its corporate voyage, the essence of success lies in strategic financial management rather than solely pursuing profit. As with countless acquisition narratives, time will unfold whether this turning point births a phoenix or bids adieu to extant dreams. What remains vital is not just riding tides but steering into promising horizons with foresight and shrewd strategies. In this expedition, knowing when to adjust sails or cut losses will tell the tale!

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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In this article (YTD Performance)


* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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