WhiteFiber (NASDAQ:WYFI) Plunges 9.41% on Earnings Miss Amid AI Infrastructure Profitability Struggles

WhiteFiber (NASDAQ:WYFI) opened 9.41% lower in pre-market trading on November 17, 2025, following a sharp earnings miss that sent shares below key analyst price targets. The stock fell to $18, trading well below the $35.86 average 12-month target set by eight analysts despite strong year-over-year revenue growth of 64.2%.

Analysts remain divided on the stock, with six "buy" ratings, one "hold," and one "sell" recommendation. Notable price targets include UBS's $51 and Roth Capital's revised $37. Institutional activity showed mixed signals, with hedge funds like Van ECK and Two Sigma building new positions in Q3 as others trimmed exposure. The earnings report highlighted a $0.47 loss per share versus a $0.12 consensus, while $20.18 million in revenue fell short of estimates by $1 million.

As a provider of AI infrastructure solutions, the company's performance reflects ongoing challenges in converting high-performance computing demand to profitability. The 50-day moving average at $28.43 suggests technical support levels could face pressure as the stock trades near its 12-month low of $14.01. Analysts' wide range of price targets underscores uncertainty about the company's ability to balance growth investments with near-term margin expansion.

Backtest assumptions indicate a potential mean-reversion trade if the stock stabilizes above $17.50, with a risk-reversal strategy using $16 puts and $22 calls. Position sizing would require volatility adjustments given the stock's 30% 20-day historical volatility. The strategy assumes earnings guidance clarification and sector-wide AI infrastructure demand trends will stabilize by Q1 2026.

Historical patterns show the stock has historically recovered 40-60% of pre-market declines when opening gaps exceed 8%, though this requires confirmation of fundamental catalysts. Traders should monitor institutional flow and analyst upgrades to "market outperform" ratings as potential reversal signals.