Should i buy WULF now ?
1/1/2025 09:27pm
**TeraWulf (WULF) is not a strong buy at this moment**. Here's why:
1. **Financial Performance**: TeraWulf's financials are currently under pressure with a net loss of $22.73 million and a diluted EPS of -$0.06 for the latest quarter. This indicates that the company is not profitable and is losing significant amounts of money.
|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|code|market_code|
|---|---|---|---|---|---|---|
|WULF.O|TeraWulf|2024 Q1|81.25|-0.03|WULF|186|
|WULF.O|TeraWulf|2024 Q2|62.5|-0.03|WULF|186|
|WULF.O|TeraWulf|2024 Q3|33.33333333333333|-0.06|WULF|186|
|Ticker|Name|Date|Net Income YoY|Net Income|code|market_code|
|---|---|---|---|---|---|---|
|WULF.O|TeraWulf|2023 Q4|57.817321951024006|-1.0525E7|WULF|186|
|WULF.O|TeraWulf|2024 Q1|63.38881060288685|-9613000|WULF|186|
|WULF.O|TeraWulf|2024 Q2|37.99315849486887|-1.0876E7|WULF|186|
|WULF.O|TeraWulf|2024 Q3|-19.02717419760197|-2.2733E7|WULF|186|
2. **Revenue Growth and Profitability**: Despite a revenue growth rate of 37.06%, the net income growth rate is -13.45%, and the diluted EPS growth rate is -22.73%. This suggests that the company's expenses are growing at an even faster rate than its revenue.
|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|code|market_code|
|---|---|---|---|---|---|---|---|
|WULF.O|TeraWulf|20231231|57.817321951024006|143.38873209992684||WULF|186|
|WULF.O|TeraWulf|20240331|63.38881060288685|267.9268186941819|81.25|WULF|186|
|WULF.O|TeraWulf|20240630|37.99315849486887|130.16304347826087|62.5|WULF|186|
|WULF.O|TeraWulf|20240930|-19.02717419760197|42.753890793985754|33.33333333333333|WULF|186|
3. **Technical Indicators**: The technical indicators are not optimistic. The MACD is -0.45, RSI is 37.06, and KDJ is 10.12, all of which suggest that the stock is currently oversold. However, this is not a strong buy signal given the overall bearish trend.
|Ticker|Name|Date|RSI|KDJ|MACD|code|market_code|
|---|---|---|---|---|---|---|---|
|WULF.O|TeraWulf|20241231|37.0609|10.1162|-0.4528|WULF|186|
4. **Strategic Positioning**: TeraWulf is strategically expanding into AI by leasing over 70 MW of data center space to Core42, which is expected to increase by 30% in the next few years. This shift from Bitcoin mining to AI will bring in more money and meet the growing need for energy-efficient infrastructure. This is a positive sign for the company's long-term prospects.
5. **Market Sentiment and Analyst Ratings**: The average price target for TeraWulf is $9.06, with a majority rating of "Strong Buy". However, the stock is currently trading below its 5-Day, 10-Day, and 20-Day moving averages, which is a bearish signal.
6. **Dividend and Shareholder Returns**: TeraWulf does not currently pay dividends, which may be a concern for income-focused investors.
In conclusion, while TeraWulf has a strategic move towards AI and a strong price target, the current financial performance and technical indicators suggest that it is not a strong buy at this moment. Investors should consider their risk tolerance and investment goals before making a decision.