Latest news with #CoreWeave
Yahoo
3 hours ago
- Business
- Yahoo
CoreWeave Rules the Unusual Options Activity. But Should It Be in Your Portfolio?
Friday looks to be a volatile day in the markets after Donald Trump rattled his tariff saber on Thursday. The president threatened Canada with 35% tariffs on imports into the U.S. and blanket tariffs of 15%-20% on those countries that have yet to receive a letter from the White House with a specified rate. Creating a 38% 'Dividend' on SOFI Stock Using Options Wednesday's Unusual Options Activity Reveals 3 Standout Long Straddle Plays Teva Pharmaceutical (TEVA) Just Flashed a Statistically Viable Signal for Bullish Traders Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! It continues to amaze me how little regard investors are paying to tariffs at the moment. It's as if the early April swan dive — from April 2's close to the April 8th close (4 trading days), the S&P 500 lost 12% — was decades ago. I'm not a technical analyst, so I'm not going to spend any more time questioning the sanity of investors. Still, I have to say, the mere fact that CoreWeave (CRWV) had 10 of the top 20 unusually active options--defined as Volume-to-Open-Interest ratios of 1.24 or higher and expiring in seven days or longer--speaks volumes about where investors' heads are at. The AI-focused company may be ideally situated for the boom in artificial intelligence, so I get the heightened options volume--711,765 on Thursday, about 75% higher than the 30-day average--I'm not sure the average retail investor should be buying CRWV for the long haul. Have an excellent weekend. As the S&P 500 P/E multiple moves higher in 2025, it gets closer to hitting a 10-year high. Right now, it's around 30x, the same level as March 2021, down from the 10-year high of 38.20x in December 2020. Source: While I understand that investors are willing to pay more for AI-related businesses, it seems that they're eager to do so for almost every company in every industry. How long can this carry on? That is the million-dollar question. At present, CoreWeave loses an exceptional amount of money, so I'll focus on its EV/TTM revenue multiple instead. It's currently 28.9x, up from 14.7x when it went public at $40 in March. It's up 246% in the three months since its IPO. CoreWeave generates over 70% of its revenue from Microsoft (MSFT). The tech giant's enterprise value of $3.75 trillion is 13.9x its trailing 12-month revenue. Back in March, it was 10.8x, much cheaper than CoreWeave. Which begs the question? Why not buy MSFT stock for the long term, significantly reducing your risk exposure, while likely delivering above-average returns over the long haul? In Microsoft's Q3 2025 quarter, its operating income was $32.o billion. CoreWeave's operating loss was $ 27.0 million, according to S&P Global Market Intelligence. In 2024, CoreWeave's net loss was $937.8 million, up from $593.7 million a year earlier. Its adjusted net loss was a more palatable $64.9 million, with an adjusted operating profit of $355.8 million, up substantially from $703,000 in 2023. You could make the case that the adjusted numbers show that it can make money on a non-GAAP basis, which suggests its P/E multiple isn't as outrageous as it might seem. However, the net debt should be something to watch closely. At the end of December, it was $10.62 billion, or 16% of its $67.49 billion market cap. That would be a reasonable percentage for a typical industrial business, but for a tech company? Microsoft's net debt of $25.4 billion is 0.7% of its $3.73 trillion market cap. Again, why not invest in MSFT stock and call it a day? One more thing. In the 12 months ended March 31, the company's interest expense was $584.0 million. That's $4.64 of sales for every $1 in interest. At the end of December, it was $5.31 in sales for every $1 in interest. I doubt that's sustainable. I guess we'll find out soon enough. When you examine the company's financials, it's easy to see why options are popular for CoreWeave stock. It's a lower-risk way to play the fast-growing business without losing your shirt. As mentioned, there were 10 unusually active options in the top 20 yesterday (see below). Not surprisingly, they're all calls. CoreWeave's P/C (Put/Call) volume ratio yesterday was 0.26, which means there were 3.85 calls for every put. That's very bullish. Meanwhile, the P/C OI ratio was 1.46, which means there are 1.46 puts open for every call, a bearish long-term indicator. Now, there are plenty of esoteric options strategies you could play here, but I'm going to assume you're relatively risk-neutral and do like the long-term potential of its stock. With that being the case, I'd probably go with the Jan. 16/2026 $100 call with an ask price of $40.15, or 29% of its share price. With a DTE (days to expiration) of 191, it gives you a decent amount of time for the shares to appreciate further. About 28% ITM (in the money) and a breakeven of $140.15, if you believe it will move higher over the next 191 days, your profit probability is high. If you're a little more adventurous, you could sell a Jan. 16/2026 $100 put for an annual return of $43.9%. Of course, if the share price falls below $100, you could be asked to buy the shares at expiration at $100, above where the shares trade for a paper loss. CoreWeave is a stock that I would neither own nor use options for, but that doesn't mean you shouldn't. On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
8 hours ago
- Business
- Yahoo
CoreWeave, Inc. (CRWV) Is Confident About NVIDIA's AI GPU Demand, Says Jim Cramer
We recently published . CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks Jim Cramer recently discussed. CoreWeave, Inc. (NASDAQ:CRWV) is an AI and cloud computing infrastructure provider. It is one of the strongest-performing stocks of 2025 as the shares have gained 226% since their IPO in March. CoreWeave, Inc. (NASDAQ:CRWV) has benefited from market optimism about AI as investors believe that the firm can benefit from sustained long-term AI demand and its early mover advantage in the AI infrastructure space. CoreWeave, Inc. (NASDAQ:CRWV) also recently announced that it would acquire Core Scientific, and Cramer commented that the deal made him optimistic about the overall dealmaking environment in America. Here are his recent remarks about CoreWeave, Inc. (NASDAQ:CRWV): 'You speak to CoreWeave, you speak to Michael Entrator, who's a terrific guy. Uh, he would say look, we can't put 'em up fast enough. And, we are, they're valuable even after they do not have the latest and greatest. People do not understand that. This is not the 386 going to the 46 going to the Pentium, you can't throw these away. They work. There's always some use for even the oldest ones. So they pay themselves back.' In his earlier remarks, Cramer commented on CoreWeave, Inc. (NASDAQ:CRWV)'s latest deal and his meetings with management: 'Yes and they're all over me today. CoreWeave is saying that this helps them immensely in terms of the amount of power they have and it's actually a good deal for their finances. The stock's turned up, they were up big on, well CoreWeave was up big, and it's given back that. This is the kind of deal that if I were Lina Khan at the FTC, I would say wait a second, Core and Core? No. We will not let a core merge with a core. . . No I mean to being facetious, but not really, in someways because I think she would say these are two companies that could compete. Which is true. But I think that this is the kind of deal that we ought to get used to having. It's one of the things that makes me bullish. Which is that there's not any, you know you can make a deal if you think it's rational and not expect to be challenged. Now someone might say, you know Jim, that was really a cheap shot. No. The deference was cheap. The deference. 'I've got Michael Entrator. He has done a remarkable job, I don't know if people care about CoreWeave anymore, but, Michael Entrator's stock opened, it was at 40 and it went up to 156! You know, did people who buy that make money or did they just kind of say you know what, I'm glad I have my index fund but by the way, no. Ben Stoto and I were very positive on CoreWeave after meeting with the company and spending some time with them. Just very impressive people who were doubted and are doubted, there's a very big short position. But you know what, they figured they have a, when you ask NVIDIA what do you think of them, and NVIDIA bought a quarter of that IPO, NVIDIA would say great partner, great partner. While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Business Insider
11 hours ago
- Business
- Business Insider
Analysts Offer Insights on Technology Companies: Dell Technologies (DELL) and CoreWeave, Inc. Class A (CRWV)
Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Dell Technologies (DELL – Research Report) and CoreWeave, Inc. Class A (CRWV – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Dell Technologies (DELL) Bank of America Securities analyst Wamsi Mohan maintained a Buy rating on Dell Technologies on July 9. The company's shares closed last Friday at $126.83. According to Mohan is a 5-star analyst with an average return of 12.4% and a 61.4% success rate. Mohan covers the Technology sector, focusing on stocks such as International Business Machines, Hewlett Packard Enterprise, and DigitalOcean Holdings. Currently, the analyst consensus on Dell Technologies is a Strong Buy with an average price target of $136.50, representing a 7.0% upside. In a report issued on June 26, Morgan Stanley also maintained a Buy rating on the stock with a $135.00 price target. CoreWeave, Inc. Class A (CRWV) Citi analyst Tyler Radke maintained a Hold rating on CoreWeave, Inc. Class A on July 9 and set a price target of $160.00. The company's shares closed last Friday at $125.84. According to Radke is a 4-star analyst with an average return of 5.9% and a 50.4% success rate. Radke covers the Technology sector, focusing on stocks such as ServiceTitan, Inc. Class A, Zoom Video Communications, and Palantir Technologies. CoreWeave, Inc. Class A has an analyst consensus of Moderate Buy, with a price target consensus of $78.53, representing a -40.9% downside. In a report issued on June 25, H.C. Wainwright also initiated coverage with a Hold rating on the stock with a $212.00 price target.
Yahoo
12 hours ago
- Business
- Yahoo
The Saturday Spread: Leveraging Applied Game Theory to Find Probabilistically Attractive Trades
With the Trump administration poised to hike tariffs on Canadian goods to 35%, the equities market ended on a down note heading into the weekend. Still, if there is a positive to the political malaise, it's that certain publicly traded enterprises are now on discount. Of course, the question is, which ones? To answer this inquiry, the financial publication industry typically likes to rehash corporate disclosures and old newspaper clippings. The problem, though, is that the market has already digested all publicly available information. Therefore, it stretches credibility to assume the existence of undiscovered opinions — especially of those involving major entities. CoreWeave Rules the Unusual Options Activity. But Should It Be in Your Portfolio? ConocoPhillips Stock Is Cheap - How to Make a 2.0% 1-Month Yield Shorting COP Puts Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! To better decipher and discover untapped trading opportunities, it may be useful to approach the market under the framework of applied game theory — essentially, a process to act when the odds favor you and step away when they do not. The above paradigm can be best explained by a thought experiment. Imagine that you flip a coin a hundred times every business day. What you flip on Monday would have no bearing on what you flip on Tuesday, precisely because coin tosses represent random events. If the market were also random, the chance of upside on any given week would land around 50%. Further, you could study the probabilities of any interval in the past. Under a random system, the observed odds across these intervals would be statistically no greater than a coin toss. But that's not what we observe. Instead, different demand structures lead to different forward responses. By converting the price action of all stocks into a unified language — market breadth or sequences of accumulative and distributive sessions — we can uncover statistically viable patterns. This way, we're letting math (not emotions) be our north star. An energy enterprise focused on natural gas processing and transportation, Williams Companies (WMB) presents a statistically intriguing case. In the past two months, WMB stock printed a 4-6-D sequence: four up weeks, six down weeks, with a negative trajectory across the 10-week period. While this conversion of price action into market breadth pancakes WMB's magnitude dynamism into a simple binary code, the move also eliminates the white noise in the data. Stock prices fall under the category of continuous scalar signals, effectively meaning that they're not bounded by anything. That makes share price — and trends based on it — a messy metric to analyze. By focusing on market breadth (which is a representation of demand), we can get down to the core question: was the market a net buyer or net seller of the security at hand? By converting WMB stock into market breadth sequences, we can structure its demand profile into the following table (based on rolling 10-week sequences): L10 Category Up Probability Baseline Probability Median Return if Up 2-8-D 40.00% 53.82% 0.63% 3-7-D 54.17% 53.82% 1.64% 4-6-D 61.54% 53.82% 1.91% 4-6-U 75.00% 53.82% 1.73% 5-5-D 52.78% 53.82% 1.97% 5-5-U 47.46% 53.82% 2.71% 6-4-D 83.33% 53.82% 4.64% 6-4-U 52.46% 53.82% 2.36% 7-3-U 50.00% 53.82% 1.86% 8-2-U 22.22% 53.82% 1.08% 9-1-U 33.33% 53.82% 2.43% Given that WMB is printing a 4-6-D sequence, there's a 61.54% chance that the following week's price action results in upside, with a median return of 1.91%. Assuming that the bulls maintain control of the market for a second week, the median expected performance is another 0.84% tacked on. That would put WMB stock a bit shy of the $60 mark. Those who are aggressive may consider the 58/60 bull call spread expiring July 25. Using data from Barchart Premier, we can identify that this transaction features a breakeven price of $58.95, giving us an adequate cushion if WMB stock doesn't quite reach $60 at expiration. One of the leading advanced biotechnology companies in the world, Regeneron Pharmaceuticals (REGN) is also statistically appealing. In the past two months, REGN stock has printed a 6-4-D sequence: six up weeks, four down weeks, an overall negative trajectory. It's a rare sequence, having only materialized 22 times since January 2019. Part of the rarity could come down to the negative trajectory despite the balance of accumulative sessions being greater than distributive. Notably, in 63.64% of cases when the 6-4-D sequence flashes, the following week's price action results in upside, with a median return of 2.48%. Should the bulls maintain control of the market for the next three weeks, an additional performance boost of 2.15% may be expected. L10 Category Up Probability Baseline Probability Median Return if Up 2-8-D 50.00% 54.71% 0.57% 3-7-D 45.71% 54.71% 2.15% 4-6-D 45.95% 54.71% 3.28% 4-6-U 46.15% 54.71% 2.16% 5-5-D 56.82% 54.71% 2.77% 5-5-U 60.71% 54.71% 2.46% 6-4-D 63.64% 54.71% 2.48% 6-4-U 47.17% 54.71% 1.96% 7-3-D 80.00% 54.71% 2.48% 7-3-U 54.05% 54.71% 2.51% 8-2-U 61.54% 54.71% 2.33% 9-1-U 62.50% 54.71% 1.81% 10-0-U 66.67% 54.71% 1.50% Ordinarily, REGN stock enjoys a strong upward bias. In any given week, the chance that a long position in REGN will be profitable is 54.84%. What the 6-4-D sequence does, in effect, is to provide almost 9 percentage points of 'free' odds in favor of the bullish speculator, thus incentivizing a debit-based options strategy. Aggressive traders may consider the 575/590 bull spread expiring Aug. 15. This transaction requires a net debit of $860 with a maximum payout of 74.42%. A fleet management and safety platform provider, Samsara (IOT) is one of the leaders in applied artificial intelligence. While a powerfully relevant enterprise, IOT stock didn't get much love this past week, losing over 4% in the trailing five sessions. On a year-to-date basis, IOT dropped more than 14% of value. Still, contrarian market participants may want to give Samsara another look. In the past two months, IOT printed a 4-6-D sequence: four up weeks, six down weeks, negative trajectory. For Samsara, the sequence is a relatively rare one, having materialized only 23 times since January 2019. However, it appears statistically intriguing because, in 65.22% of cases, the following week's price action results in upside, with a median return of 6.21%. L10 Category Up Probability Baseline Probability Median Return if Up 2-8-D 50.00% 52.69% 5.32% 3-7-D 54.55% 52.69% 7.00% 4-6-D 63.64% 52.69% 6.37% 4-6-U 80.00% 52.69% 11.61% 5-5-D 61.54% 52.69% 6.37% 5-5-U 60.00% 52.69% 4.27% 6-4-D 45.45% 52.69% 7.11% 6-4-U 42.86% 52.69% 5.19% 7-3-U 57.89% 52.69% 6.08% 8-2-U 25.00% 52.69% 19.07% Should the bulls maintain control for a second week, the implied median performance boost is an additional 3.75%. On Friday, IOT stock closed at $37.39, meaning that it could be on pace to exceed the $41 level. Given the above market intelligence, aggressive traders may consider the 39/41 bull call spread expiring Aug. 15. This transaction requires a net debit of $90, with a maximum payout of over 122%. On the date of publication, Josh Enomoto did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
14 hours ago
- Business
- Yahoo
This Stock Outperformed Nvidia and Palantir in the First Half. Is It Still a Buy?
CoreWeave stock surged by 300% in just a few months. The company is benefiting from high demand for computing power to support AI training and inferencing. 10 stocks we like better than CoreWeave › Over the past couple of years, Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have both shown their strengths in artificial intelligence (AI) -- and as a result, their earnings and stock performance have soared. Last year, Nvidia was the best-performing component in the Dow Jones Industrial Average (though it only was added to the venerable blue chip index in November), and Palantir posted the biggest gain in the S&P 500. Both of these players have continued to advance, and considering that we're in the early stages of the AI boom, more earnings growth and stock price gains could be on the way. But, in the first half of 2025, another company emerged as a potential AI powerhouse. In fact, this particular stock actually outperformed Nvidia and Palantir in the period, climbing by a mind-boggling 300%. Now you may be wondering whether this high flyer is still a buy. This top-performing AI stock actually is new to the market, completing its initial public offering in late March, so its triple-digit gains took place over a period of only three months. I'm referring to CoreWeave (NASDAQ: CRWV), a company that is closely linked to Nvidia. This is because CoreWeave generates most of its revenue by renting out access to its vast collection of Nvidia graphics processing units (GPUs). The company has more than 250,000 of them deployed across its cloud infrastructure platform, and it specializes in handling AI workloads, offering customers the configurations they need to accomplish their goals faster. Nvidia owns a 7% stake in CoreWeave, and made it possible for the young company to be the first to launch its latest GPUs. In February, CoreWeave became the first hyperscaler to make Nvidia's new Blackwell architecture broadly available -- and it just did the same recently with the latest iteration, Blackwell Ultra. So, a bet on CoreWeave is a bet on demand for Nvidia's latest chips. Its first-quarter earnings report showed this demand is going strong, as its revenue climbed by more than 400% year over year, and Nvidia's own Q1 earnings report offered additional clues: For example, Nvidia said it saw a leap in demand for inferencing computing power in the quarter. This sort of trend is likely to benefit CoreWeave. Inferencing is the process an AI model goes through when attempting to answer complex questions -- and it takes significant parallel processing power of the type provided by GPUs and other AI accelerators. As more people and organizations apply AI to real-world problems, inferencing could drive a whole new era of growth for companies like Nvidia and CoreWeave. It's important to remember that the need for GPUs doesn't end once a model is trained. CoreWeave's fleet of cloud servers may have plenty of busy days ahead over the long term. All of this is great, but CoreWeave still carries some risk for shareholders -- and that's due to the enormous and ongoing investments in infrastructure required to serve demand for GPUs. The company will have to keep up its capital spending to increase the size and power of its fleet of GPU clusters, and considering that Nvidia aims to roll out new chip architectures annually, CoreWeave will have to make those investments frequently to keep its offerings top of the line. All of this makes it difficult to estimate when CoreWeave will reach profitability. In the first quarter, its technology and infrastructure expenses surged by more than 500% to about $500 million, and it's fair to say the company is early in its growth story. It's also important to note that CoreWeave is in an expansion phase that involves other investments too. Some of those up-front costs may result in savings down the road. One example is the company's recently announced plan to buy Core Scientific -- once that deal closes, CoreWeave no longer will have to pay rent to the data center operator, resulting in the savings of $10 billion in future lease payments. Though this will be a positive, CoreWeave's stock fell after the announcement earlier this week due to investors' concerns about share dilution -- it's an all-stock deal with a value of $9 billion. Investors also know that any acquisition comes with some risks and costs, as the buyer will have to integrate its new operations into its existing business. So the question remains: After strongly outperforming two of the market's biggest AI companies year to date, is CoreWeave still a buy? The answer depends on your investment strategy. If you're a cautious or value investor, you'd be better off exploring other opportunities. But if you're an aggressive investor who buys and holds stocks for the long term, now would still be a good time to add a few CoreWeave shares to your portfolio -- demand for AI and CoreWeave's immediate access to Nvidia's latest GPUs could result in major gains over the long run. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy. This Stock Outperformed Nvidia and Palantir in the First Half. Is It Still a Buy? was originally published by The Motley Fool
