On August 13, Cerebras Systems declined 13.36% in regular trading, trading at $233.19/share, with turnover of $441 million. The sell-off was triggered by the company's Q2 earnings report released after market close on August 12, which significantly missed Wall Street expectations on both top and bottom lines.

Cerebras reported Q2 revenue of $180.1 million, up 74% year-over-year but well below the analyst consensus of approximately $194 million. GAAP loss per share came in at $2.98, far worse than the expected loss of $1.41-$1.62. Hardware revenue fell 23% year-over-year to $54.1 million, serving as the primary drag on total revenue. Cloud computing services revenue reached $126 million, up 281% year-over-year. The company raised full-year revenue guidance to $880-$890 million and guided Q3 revenue of $214-$216 million, above consensus of $212 million. However, short-term earnings shortfalls triggered concentrated profit-taking among investors who had accumulated gains since the company's IPO in May. Citi lowered its price target to $320 from $340, while Morgan Stanley raised its target to $279 from $273.

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