Cerebras Stock Has Been Cut in Half. It Still Costs About 145 Times Next Year's Estimated Earnings.
After losing half its value, is the AI computing specialist's stock finally cheap enough to buy?
Overview
Cerebras Systems (NASDAQ:CBRS) has been cut in half. Shares of the artificial intelligence (AI) computing specialist peaked at $386.34 on their first day of trading in May, a day after the company priced its initial public offering (IPO) at $185 and raised $6.4 billion. As of this writing, the stock trades around $184 -- about 52% below the high, and just under that IPO price.
A decline like that usually follows a stumble: a guidance cut, a lost customer, a bad quarter. Cerebras hasn't had one. Shares dropped double digits anyway the day after its mid-August update, arguably the company's strongest yet and one in which management raised its outlook for the year.
Details
Yet even at half price, the stock costs about 145 times the earnings analysts expect the company to generate next year.
Source
Originally published at www.fool.com.