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- 🗞️ CoreWeave's Rapid AI Growth
🗞️ CoreWeave's Rapid AI Growth
PLUS: Why American Airlines surged 12%
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Market Performance
S&P 500: 6,445.76 (⬆️ 1.13% )
Nasdaq: 21,681.90 (⬆️ 1.39%)
Dow Jones: 44,458.61 (⬆️ 1.10%)
CoreWeave’s Rapid Growth
CoreWeave (CRWV) stock tumbled over 10% in after-hours trading despite beating earnings expectations and raising full-year guidance.
The AI infrastructure provider reported revenue of $1.21 billion versus $1.08 billion expected, more than tripling from $395.4 million a year earlier.
But here's what investors are concerned about: operating margins collapsed from 20% to just 2%, primarily due to $145 million in stock-based compensation costs.
Meanwhile, debt has ballooned to $11.1 billion as the company aggressively expands capacity.
The irony? Revenue growth remains "capacity-constrained" with demand far outstripping supply, yet the market is punishing the stock for execution costs.
CEO Mike Intrator highlighted expanding business with OpenAI and new clients like Goldman Sachs and Morgan Stanley, while the company acquired AI monitoring startup Weights and Biases for $1.4 billion.
CoreWeave raised 2025 revenue guidance to $5.15-5.35 billion (174% growth) from the prior $4.9-5.1 billion range, but investors seem more focused on profitability concerns than explosive growth.
Our Takeaway
CoreWeave embodies the classic AI infrastructure dilemma: massive demand requiring enormous capital investment before profits materialize.
While the growth story remains intact, margin pressure and debt levels signal growing pains ahead.
From Italy to a Nasdaq Reservation
How do you follow record-setting success? Get stronger. Take Pacaso. Their real estate co-ownership tech set records in Paris and London in 2024. No surprise. Coldwell Banker says 40% of wealthy Americans plan to buy abroad within a year. So adding 10+ new international destinations, including three in Italy, is big. They even reserved the Nasdaq ticker PCSO.
Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.
Market Overview
Markets rallied to fresh record highs after July's inflation data came in cooler than expected, reigniting rate cut hopes.
The consumer price index rose 2.7% year-over-year versus 2.8% expected, while core CPI increased 3.1% as anticipated.
The tame inflation reading sent rate cut probabilities soaring, with traders now pricing in a 94% chance of a September cut versus 85% before the data.
Small caps led the charge with the Russell 2000 surging nearly 3%, as lower borrowing costs would particularly benefit smaller companies.
The metals and mining sector also shone, with the SPDR Metals & Mining ETF hitting its highest level since 2008, driven by Cleveland-Cliffs and Alcoa both advancing over 5%.
Stock Moves Deciphered 📈
American Airlines (AAL)- The airline company rose more than 12% after CPI held steady at 2.7%, boosting investor optimism for September Fed rate cuts.
Lower rates benefit consumer discretionary stocks through cheaper borrowing and increased spending.
Intel (INTC) - Shares rose 5.6% after President Trump's reversal on CEO Lip-Bu Tan, now calling the executive a "success" and scheduling cabinet meetings to discuss Intel's future strategy.
ON Holding AG (ONON) - The Swiss sportswear company rallied 11% after reporting Q2 revenue of 749 million Swiss francs versus 705 million expected, while raising full-year guidance on strong demand.
Headlines You Can't Miss
Hanesbrands skyrocketed 28% on reports of a nearly $5 billion acquisition by Gildan Activewear, with Gildan shares falling 5%.
Sinclair soared 27% after starting a strategic review that could result in a merger or spinoff of its Ventures business.
Mercury Systems jumped 24% after Q4 earnings beat expectations with 47 cents per share versus 22 cents expected.
Hillenbrand surged 15% on better-than-expected Q3 results and raised full-year guidance.
Sonos rallied 12% after CEO Thomas Conrad purchased 92,300 shares in a regulatory filing.
Trump signaled openness to letting Nvidia sell downgraded Blackwell chips to China at 30-50% reduced performance..
Trending Stocks
CAVA (CAVA) - The Mediterranean food chain plummeted 21% after reporting second-quarter revenue of $280.6 million versus $285.6 million expected, driven by weak same-store sales growth.
The company also lowered its full-year same-store sales forecast, disappointing investors who had expected continued momentum in the fast-casual segment.
CEO Quote🎤: “Despite the fluid macroeconomic environment, we grew CAVA Revenue 20.3%, and our 2025 new restaurant class is on track to deliver AUVs above $3 million.”
Circle Internet Group (CRCL) - The stablecoin issuer jumped 1.3% after reporting 53% revenue growth to $658.1 million in its first quarterly earnings as a public company.
As the issuer of USDC, the world's second-largest stablecoin, Circle benefited from strong growth in digital asset adoption and increased stablecoin usage.
CEO Quote🎤: “We demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners.”
AST SpaceMobile (ASTS) - Shares gained 8.4% despite missing earnings expectations with a 41-cent loss per share on $1.2 million revenue.
The satellite company's ambitious plan to deploy 45-60 satellites by 2026 and execute launches every 1-2 months captured investor attention as competition with SpaceX intensifies.
CEO Quote🎤: “We are confirming our fully-funded plan to deploy 45 to 60 satellites into orbit by 2026 to support continuous service in the US, Europe, Japan, and other strategic markets, including the U.S. Government. We also have planned orbital launches every one to two months on average during 2025 and 2026.”
What’s Next?
Key Earnings Today 👇
Cisco (CSCO): Q2 revenue forecast at $14.62 billion vs. $13.64 billion last year. Adjusted earnings are expected to grow from $0.87 per share to $0.98 per share.
Equinox Gold (EQX): Q2 revenue forecast at $470 million vs. $269.4 million last year. Adjusted earnings are expected at $0.02 compared to a loss per share of $0.01 last year.
Brinker International (EAT): Q2 revenue forecast at $1.44 billion vs. $1.21 billion last year. Adjusted earnings are expected to grow from $1.61 per share to $2.47 per share.
Track upcoming news and earnings on your portfolio companies with Ziggma.
Chart of the Day
Source: Carbon Finance
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