Why WhiteFiber Stock Is Plummeting Today
Key Points
WhiteFiber posted sales and earnings misses in Q3.
WhiteFiber still saw strong sales growth last quarter, but cloud services revenue missed expectations.
The stock got hit with huge sell-offs near the market open but has seen some recovery momentum.
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WhiteFiber (NASDAQ: WYFI) stock is getting hit hard in Friday's trading. The data center company's share price was down 9.1% as of 3:15 p.m. ET and had been off as much as 18% earlier in the day's trading.
Thanks to recovery momentum for the broader market, WhiteFiber stock has regained some ground following the initial reaction to its third-quarter results -- but investors are still broadly negative on the report. With today's sell-off, the company's share price is up just 6% from where it stood at market close on its August 2025 initial public offering (IPO).
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WhiteFiber stock sinks on Q3 misses
WhiteFiber published its Q3 results after yesterday's market close, and reported sales and earnings that fell short of the market's expectations. The company recorded a loss of $0.47 per share on revenue of $20.2 million in the period. The company's loss per share came in $0.31 higher than the target called for by the average analyst estimate, and sales came in roughly $1.8 million weaker than expected. Sales were still up 65% year over year, but 48% annual growth for cloud services revenue came in softer than expected.
What's next for WhiteFiber?
WhiteFiber is continuing to build out its support capacity for artificial intelligence (AI) data centers. With its Q3 report, the company said that it was evaluating a large array of data center sites to support future growth. But while the company will likely continue to grow sales at an aggressive pace in the near term, there's also some strong expansion priced into the company's valuation even with today's pullback. As of this writing, WhiteFiber has a market capitalization of approximately $659 million and is valued at approximately 7.9 times this year's expected sales. If the business continues to serve up aggressive sales growth, its current valuation could come to look cheap -- but there's a lot of uncertainty involved in charting its forward trajectory.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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