B. Riley Cuts Core Scientific Target as Citizens Backs AI
Core Scientific achieved Q3 profitability, beating estimates by 8,759 percent, but analysts remain split: B. Riley cut its target citing negative free cash flow of $959 million against $4.41 billion i
B. Riley Cuts CORZ Target as Citizens Backs AI Contracts
NEW YORK, November 10 —
B. Riley cut its price target on Core Scientific, Inc. (CORZ) even as a report surfaced that a billionaire took a stake before the company's AI pivot; Citizens reiterated its rating the same day based on contracted AI capacity. The stock sat at , less than half the $27.19 consensus target, with the thesis unresolved.
- Q3 EPS vs. - estimate: 8,759% beat and first profit in at least four reporting periods
- TTM operating cash flow $454M; free cash flow -$959M; total debt $4.41B against $800M cash
- 26.9% of float sold short; institutional ownership at 126.6% of float
The Infrastructure Pivot Runs on Borrowed Money
Core Scientific, Inc. (CORZ) builds high-density data center infrastructure for AI and machine learning workloads and mines bitcoin with its own hardware. Its November 5 8-K showed Q3 EPS of , the company's first profitable quarter in at least four: the two prior periods produced losses of and . TTM revenue of $590M has grown 187.1% year-over-year as the colocation buildout captures AI demand. The buildout is expensive: operating cash flow of $454M TTM covers less than half of capital spending, leaving free cash flow at -$959M against $4.41B in total debt. The DCF calculator frames what that gap implies for valuation.
Eleven Tranches, One Direction
Todd M. Duchene's Form 4 disclosures show open-market sales of approximately 10,000 shares per tranche across at least 11 transactions from August 24 through November 2, 2026. The first cleared at $17.45; on September 21, Duchene sold 10,000 shares at $18.37, $5.41 above where the stock trades today; the November 2 tranche cleared at $12.78. The sequence is a step-down across nearly three months, not a one-time sale, each tranche at a lower price than the last. Institutional ownership at 126.6% of float, consistent with heavy share borrowing for short selling, confirms substantial short positioning on the other side of that insider selling.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| CORZ | $4.2B | 75.6x | -26.6% |
| CIFR | $2.9B | 21.3x | -63.5% |
| WULF | $6.2B | n/a | +0.1% |
| BTDR | $1.7B | n/a | -56.0% |
| HUT | $6.7B | n/a | +29.9% |
| KEEL | $1.2B | n/a | -41.8% |
The Next Checkpoint Is Free Cash Flow
The bullish case rests on Citizens' reiteration based on contracted AI capacity and a Benzinga report that a billionaire took a stake before the AI pivot, both supporting forward estimates that carry a 38.6x multiple. With 26.9% short interest, bears argue that contracted capacity and one profitable quarter, against TTM EPS still at -$0.33, have not changed the capital structure equation. B. Riley's target cut, landing the day after Q3 earnings, reinforces that skepticism. The checkpoint for either camp: whether colocation contracts convert to narrowing free cash flow deficits in coming quarters. Run the free Core Scientific, Inc. deep-dive → for the latest numbers.
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Frequently Asked Questions
What was Core Scientific's Q3 2026 earnings beat?
Core Scientific reported Q3 EPS of $0.3591, beating estimates of -$0.00411 by 8,759 percent. This was the company's first profitable quarter in at least four reporting periods, following prior quarter losses of $0.184 and $0.110.
Why did B. Riley cut Core Scientific's price target?
B. Riley cited negative free cash flow of -$959 million TTM against total debt of $4.41 billion. Operating cash flow of $454 million funds less than half the company's capital spending needs, creating a structural cash deficit despite the profitable quarter.
Why does Citizens maintain its bullish rating?
Citizens reiterated its rating based on Core Scientific's contracted AI capacity and long-term infrastructure contracts. The company's colocation buildout for AI workloads drove 187.1 percent TTM revenue growth to $590 million, the basis of Citizens' bull case.
Is CEO Todd Duchene selling shares?
Yes. Form 4 filings show Duchene sold approximately 10,000 shares per tranche in at least 11 transactions from August 24 through November 2, 2026. The highest sale price was $18.37 on September 21, and the most recent tranche on November 2 cleared at $12.78.
Where does Core Scientific trade versus the analyst consensus target?
The stock trades at $12.955 against a $27.19 consensus price target, less than half the target. At current levels, forward earnings multiples reach 38.6x, reflecting divergent analyst views on whether the company's contracted AI capacity justifies higher valuations given the debt burden.
One analyst cut Core Scientific's price target while another reiterated its rating on contracted AI capacity — both within 24 hours of a report that a billionaire investor had already taken a stake ahead of the company's AI pivot. The divergence lands with the stock at $12.955, less than half the $27.19 consensus target.