WYFI Should I Buy
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Buy now. WYFI just sold off hard (-11.4% regular session) and is sitting near key support (S1 18.61) with a bullish-skewed options market (low put activity, more call interest) and supportive near-term news (a large holder reaffirming it won’t sell into the lockup expiry). With no Intellectia buy signal, this is not a “system” strong buy, but the current location (post-drop near support) offers an attractive immediate entry for a rebound back toward the pivot (20.83) and resistance zone (~23.04).
Price/Trend: Sharp breakdown day (19.76 vs 22.02 prior close), now below the pivot (20.826), indicating near-term bearish momentum after a flush. Support/Resistance: Immediate support S1=18.61 (then S2=17.242); upside levels to reclaim are Pivot=20.826 then R1=23.042. Momentum: MACD histogram is still above 0 (0.267) but positively contracting—bullish momentum is fading and the stock is in a pullback phase rather than a clean uptrend. RSI(6)=41.95 is neutral-to-weak (not oversold), suggesting room for a bounce but not a guaranteed capitulation bottom. Moving averages converging signals consolidation/transition—after today’s dump, the next move likely depends on whether 18.6 holds.
Event-driven support: Bit Digital reiterated it will not sell its ~27M shares of WYFI in 2026, explicitly positioning it as a core long-term strategic holding—this helps reduce ‘lockup expiry’ supply fears.
Lockup narrative: With the IPO lockup expiring Feb 2, 2026, a major holder publicly staying in can stabilize sentiment.
Market narrative tailwind: Analysts frame the group as scarce power/AI infrastructure beneficiaries; any NC-1 lease progress would likely re-rate the stock quickly.
Pattern-based forward drift (provided): Similar-pattern stats indicate mild positive bias over 1 week/month (+1.52% / +6.4%).
Technical damage: The -11.4% down day below pivot increases the chance of follow-through selling if 18.61 fails (next support ~17.24).
Execution/contract risk: Prior commentary highlights uncertainty/lumpiness in cloud customers and reliance on an NC-1 lease announcement as a key confidence driver.
Near-term event risk: Earnings (QDEC
on 2026-02-12 after hours could introduce volatility if utilization/lease timing disappoints.
Profitability not established: Despite strong revenue growth, losses remain significant (EPS -0.43 in 2025/Q3).
Latest quarter: 2025/Q3. Revenue rose to $20.18M (+68.74% YoY) with gross margin improving to 33.79% (+38.60% YoY), showing strong top-line growth and better unit economics. However, profitability remains weak: net income was -$15.75M (still a sizable loss) and EPS fell to -0.43 (worse YoY). Net: growth is strong, margins are improving, but the story is still execution + path-to-profitability rather than current earnings power.
Recent trend: Coverage is uniformly positive (Buy/Outperform initiations) but price targets were trimmed after Q3 due to timing/execution uncertainty around the anticipated NC-1 lease and near-term cloud revenue lumpiness. PTs remain very elevated versus the current ~$19–$20 price (targets: $32, $37, $37, $38, $45), implying Wall Street still sees substantial upside if the leasing/ramp thesis plays out. Wall Street pros: Scarce AI/power infrastructure exposure, improving pricing dynamics, potential step-change catalyst from NC-1 lease/energization. Wall Street cons: Timing risk (lease announcement delays), customer churn/utilization lumpiness, and still-loss-making financial profile.
