Positioning no disclosures inside 60 days, left as found
Options put/call open interest 1.54, read 2026-10-28
Ethical does not pass the values gate
Price109.18 USD
Fair value147.39
Ethical score70.0/100
Our investment reviews on this name
2026-10-11Read Markdown194.95-44.0% to today ✓Accumulation gives way to Markdown first Markdown read since September
2026-10-02Read Accumulation194.95-44.0% to today Markdown gives way to Accumulation while volume is distributing
2026-09-16Read Markdown191.34-42.9% to today ✓First review on file: Markdown with results news in the headlines
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Cerebras Systems Inc holds its Markdown at $109.18. The statistical read favours the sellers, held for 11 days.
As held on the ledger · 2026-10-30
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 11 days
Price at the screen
$109.18
Valuation
N/A trailing · 94.73 forward price to earnings
Values screen
FAIL· score 70.0
The Workings
Five Screens, Shown in Full
Does not pass. Revenue purity
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
11.26%
Below 33%
Interest-bearing debt is just 11.3% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
17.48%
Below 33%
Cash held in interest-bearing accounts and securities is 17.5% of assets, under the one-third limit.
Pass
Receivables
32.34%
Below 49%
Money owed to the company is 32.3% of assets, under the 49% limit.
Pass
Revenue purity
5.26%
Below 5%
5.3% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Cerebras Systems clears the business-activity screen, and its debt is inside the line. Where it falls short is income purity: around 5% of its income right now is interest earned on a large cash position, against a roughly 5% ceiling, so it does not pass. That reflects what it earns today, not the business itself, and it could clear the screen if its operating revenue grows and the interest share falls.
Read as at 2026-11-01. It updates when the underlying figures move, and past reads are kept below.
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Fair value range in USD, drawn from the 2026-10-30 screen. The gold marker is the market price at the same screen. A 35.0% margin of safety to the base estimate.
Where our models see it going: fair-value estimate $147.39, with a range of $147.39 to $174.69, dated to the 2026-10-30 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Big chips meet bigger valuation doubts
Picture a warehouse of racks that can train the next giant model in weeks rather than months. Cerebras delivers exactly that hardware, and the 94 percent revenue jump plus 41 percent margins show real demand. Yet the shares trade at 180 times forward earnings, eleven percent above our fair value, so the numbers do not justify stepping in.
We pass for straightforward reasons. Sky-high multiples already bake in years of flawless execution in a business whose customers can pause orders the moment chip cycles turn. Narrow moat and 19 percent return on equity look solid on paper, yet they offer little cushion when the cycle shifts.
The semiconductor industry is famously cyclical, and peak earnings often arrive with the lowest multiples. Here the multiple is already extreme, which raises the classic trap of paying top dollar for earnings that may soon fall. Ethical screen clears, but price and timing do not. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
CBRS trades on NASDAQ. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-01Markdown$109.18-9.5%Entry 6
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 9.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading oversold. The street (10 analysts) rates it strong buy, with a mean price target of $294. Insiders have been net sellers over the past quarter.
2026-10-25Markdown$120.66-15.1%Entry 5
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 15.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading oversold. The street (10 analysts) rates it strong buy, with a mean price target of $294. Insiders have been net sellers over the past quarter. Since the last review it its composite score rose.
2026-10-18Markdown$142.17-27.1%Entry 4
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 27.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading bullish. The street (10 analysts) rates it strong buy, with a mean price target of $294. Insiders have been net sellers over the past quarter.
2026-10-11Markdown · changed$194.95+0.0%Entry 3
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading bullish. The street (10 analysts) rates it strong buy, with a mean price target of $294. Insiders have been net sellers over the past quarter.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 1.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading bullish. The street (10 analysts) rates it strong buy, with a mean price target of $294. Insiders have been net sellers over the past quarter.
2026-09-16Markdown$191.34Entry 1
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C. Technically it is momentum reading bullish. The street (10 analysts) rates it strong buy, with a mean price target of $294.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
