Why Core Scientific, Inc. (CORZ) Crashed on Thursday

We recently compiled a list of the 10 Stocks Drop Double Digits as Investor Caution Lingers. In this article, we are going to take a look at where Core Scientific, Inc. (NASDAQ:CORZ) stands against the other  stocks.

The stock market fell into the negative territory on Thursday, as investor caution lingered over the ongoing trade tensions among some of the world’s largest economies.

The tech-heavy Nasdaq posted the largest loss, down 2.61 percent, followed by the S&P 500 with 1.78 percent, and the Dow Jones with 0.99 percent.

Ten companies mirrored a broader market decline, dropping by as much as double digits during the end of the session. In this article, we named Thursday’s 10 biggest losers and detailed the reasons behind their decline.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A series of cryptocurrency ASIC chips connected together in a vast mining facility.

Core Scientific, Inc. (NASDAQ:CORZ)

Core Scientific, Inc. (NASDAQ:CORZ) nosedived by 18.19 percent on Thursday to close at $7.85 apiece as investors sold off positions following news that technology giant Microsoft Inc. reduced its commitment with CoreWeave, Core Scientific, Inc. (NASDAQ:CORZ)’s partner.

According to reports, the decision came after CoreWeave missed deadlines and had issues delivering materials needed to scale its artificial intelligence models.

The report followed Core Scientific, Inc. (NASDAQ:CORZ)’s announcement of a $1.2 billion investment to expand its data center portfolio to bolster its revenues.

It said that the data center, which would be built in Texas, is expected to rake in some $10 billion in revenues from artificial intelligence operations.

During the fourth quarter of the year, Core Scientific, Inc. (NASDAQ:CORZ) posted a 36-percent increase in net loss at $265 million from $195.6 million in the same period a year earlier.

Meanwhile, it widened its net loss to $1.3 billion in full-year 2024 from $246 million in 2023.

Overall CORZ ranks 4th on our list of Thursday’s biggest losers. While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CORZ but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.