Cipher Digital Inc. (NASDAQ: CIFR) stock is falling on Thursday due to a combination of significant analyst price forecast cuts following its mixed third-quarter earnings report and political headwinds from the U.S. midterm elections.
Nasdaq futures are down 3.42% while S&P 500 futures have lost 1.51%.
The broader sector faces selling pressure after Democratic victories triggered investor concerns that tighter regulation could postpone data center construction and slow artificial intelligence infrastructure growth.
Election Stalls Data Centers
CNBC reported that Democrats are regarded as supportive of pauses on building data centers.
The election outcome in Texas rattled investors most, where Democrat Gina Hinojosa defeated Republican incumbent Gov. Greg Abbott after campaigning for tighter curbs on facilities and an immediate statewide moratorium.
Yorkville Ives & Co partner Dan Ives predicted Wednesday that the vote will "slow the pace" for data center buildouts nationwide.
Wall Street Sentiment
The stock decline follows a rebound Tuesday after firms reviewed third-quarter results. Revenue of $26.701 million missed Wall Street expectations of $38.47 million and fell 62.8% year-over-year due to a shrinking Bitcoin (CRYPTO: BTC) mining business.
The average analyst price forecast for Cipher Digital stands at $24.43, implying 293.9% upside from the current share price. Of the 23 analysts covering the stock, 20 have Buy ratings and three have Hold ratings. Price forecasts range from $8.50 to $51.50.
The latest analyst action came on Wednesday, when Bernstein lowered its price forecast to $23 from $32 while maintaining an Outperform rating.
Technical Analysis
CIFR is sitting at the very bottom of its 52-week range, hovering just above the $6.18 low versus a $30.14 high, which is why small changes in sentiment can translate into outsized percentage moves. The longer-term trend is still pointed down, with the stock trading 33.1% below its 20-day SMA, 54.6% below its 50-day SMA, and about 64% below both its 100-day and 200-day SMAs.
Momentum is the main story right now: RSI is 28.94, which signals the selling has become stretched and the stock is in "oversold" territory.
- Key Resistance: $9.27 — aligns with the 20-day SMA, a common "first test" level in oversold bounce attempts
- Key Support: $6.18 — the 52-week low zone that’s currently being tested
CIFR Price Action: Cipher Digital shares were down 8.23% at $5.96 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to market data.
