Upgrading TeraWulf To Strong Buy After Earnings

Josh Arnold
24.79K Followers
(8min)

Summary

  • TeraWulf's stock surged after Q4 earnings, bouncing off key support levels, indicating strong bullish sentiment despite a prior downtrend.
  • The company’s HPC expansion, including a $1 billion Core42 agreement, suggests significant future revenue growth and transformation beyond Bitcoin mining.
  • TeraWulf's fully financed expansion and projected profitability make it an attractive investment, despite dilution and high short interest risks.
  • With supportive valuation metrics and positive momentum indicators, I upgrade TeraWulf from Buy to Strong Buy, expecting a sustained rally.

Woman standing in aisle of server room

Erik Isakson

Bitcoin miner TeraWulf (NASDAQ:WULF) reported fourth quarter and full-year earnings on Friday, and the stock exploded higher on huge volume. That’s terrific, but if we zoom out, the stock was in a sustained downtrend, that saw it lose well

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This article was written by

24.79K Followers
Josh Arnold has been covering financial markets for a decade, utilizing a combination of technical and fundamental analysis to identify potential winners early on in their growth cycles. Josh's focus is mainly on growth stocks. His goal is efficient and profitable use of capital, which overly rigid buy-and-hold strategies do not allow. Josh is the leader of the investing group Timely Trader where he focuses on limiting risk and maximizing potential reward. Features of Timely Trader include: real-time alerts, a model portfolio, technical charts, sentiment indicators, and sector analysis to find the best trading opportunities. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WULF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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