Latest news with #CoreWeave
Yahoo
14 hours ago
- Business
- Yahoo
Could Investing $10,000 in CoreWeave Make You a Millionaire?
CoreWeave has emerged as a new AI stock to watch. The company launched its initial public offering in March, and the stock already has soared in the triple digits. 10 stocks we like better than CoreWeave › Investors have piled into artificial intelligence (AI) stocks over the past couple of years, especially big names such as AI chip leader Nvidia or cloud giant Amazon. Though these companies have helped shareholders score a major win quarter after quarter and could continue to climb, some investors now are looking beyond these names that have constantly been on center stage. They aim to find the next big AI success story, and one that has emerged in recent times is CoreWeave (NASDAQ: CRWV). This tech company is new to the market, having launched its initial public offering in March, and the stock already has soared more than 320% from that point. Investors are excited about this new AI investing opportunity, especially considering the company has been delivering triple-digit revenue growth. Could investing $10,000 in CoreWeave make you a millionaire? Let's find out. So, first, let's talk a little bit about this new-to-the-market company that's outperformed well-established tech giants such as the Magnificent Seven companies so far this year. CoreWeave actually is closely linked to the world's most talked-about AI company, Nvidia, and this may be part of the reason why investors are so excited about its future. This company's main business is offering customers access to its giant fleet -- 250,000 to be exact -- of Nvidia chips across more than 30 data centers. These graphics processing units (GPUs) may be rented for long periods of time or simply by hour, offering customers great flexibility for their AI workloads. Since demand has been extremely high, even surpassing supply, for Nvidia's latest Blackwell architecture and chip, investors clearly are optimistic about CoreWeave's prospects too. CoreWeave even was the first to make this new architecture generally available to customers, highlighting its ability to serve customers fast with the latest innovations. And the fact that market giant Nvidia holds a 7% stake in CoreWeave is another element that could appeal to investors. Nvidia's backing suggests this young company is set to play a key role in the next phases of the AI story. A look at CoreWeave's growth so far shows great momentum, with revenue soaring more than 400% in the first quarter. And even considering uncertainties in recent months that have pressured the stock market, CoreWeave says customer demand still increased. In fact, the big challenge right now is to scale up and meet demand. This requires significant investment, and that means investors should expect spending to increase moving forward. Of course, CoreWeave faces competition from traditional cloud service providers, but the company stands out because it truly specializes in handling AI workloads, and doing this at scale. This could work to CoreWeave's advantage as demand for compute-intense inferencing accelerates. Now, let's get back to our question: Could investing $10,000 in CoreWeave make you a millionaire? It's clear that CoreWeave offers an interesting growth story at the moment, and even after its spectacular gains could make a compelling buy for long-term growth investors who can handle some risk. But even if CoreWeave goes on to climb 1,000% over the coming years, as tech companies have been known to do, your $10,000 would reach $110,000. This would be fantastic, but it's far from $1 million. Before making any investment decisions, though, it's important to keep in mind that you shouldn't count on any one stock to make you a millionaire. It's extremely rare to succeed this way, and even worse, it's high risk. You have a much better chance of reaching the $1 million mark, and avoiding disastrous losses, if you invest in a diversified portfolio of quality stocks. So, for example, if $10,000 is your investing budget, split this amount across several stocks and at least a few industries. And the great news is you can apply the same technique with any amount. Now, in this context, a purchase of CoreWeave could help you along the road to wealth and even eventually nudge your portfolio toward the value of $1 million. 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% 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 June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy. Could Investing $10,000 in CoreWeave Make You a Millionaire? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
15 hours ago
- Business
- Globe and Mail
CoreWeave (CRWV) Bolsters its Growth Story with New AI Cloud Products
Artificial intelligence (AI) cloud provider CoreWeave (CRWV) continues to bolster its growth story with innovative products. At the Weights & Biases Fully Connected Conference held on Wednesday, the company launched three new AI cloud software products and capabilities to help customers develop, deploy, and iterate AI faster. CRWV stock has rallied about 112% over the past month, reflecting investor optimism about the demand for the company's AI infrastructure. Confident Investing Starts Here: CoreWeave Launches New AI Cloud Products CoreWeave, which acquired AI developer platform Weights & Biases in May 2025, launched three new products – Mission Control Integration, W&B Inference, and W&B Weave Online Evaluations, to enable more developers to build AI models on its cloud platform. The launch of these products marks the first software integration between the two companies following the acquisition. The AI cloud computing platform highlighted that these capabilities integrate CoreWeave's infrastructure with Weights & Biases' intuitive tooling to empower AI engineers in training models, performing inference efficiently, and monitoring AI applications. CRWV's Continued Innovation to Boost Demand CoreWeave's efforts to offer innovative products to customers could further strengthen the demand for its platform. Powered by Nvidia's (NVDA) GPUs (graphics processing units), CoreWeave is well-positioned to capture the massive demand for computing from AI companies. This high-growth stock has rallied 325% to $170 from its IPO (initial public offering) price of $40, thanks to optimism about its prospects amid the ongoing AI wave. However, several analysts are concerned about CoreWeave's high cash burn and lofty valuation. Earlier this week, Bank of America analyst Bradley Sills downgraded CRWV stock to Hold from Buy, citing valuation concerns. Is CRWV a Good Stock to Buy? Overall, Wall Street has a Moderate Buy consensus rating on CoreWeave stock based on six Buys, 11 Holds, and one Sell recommendation. The average CRWV stock price target of $78.53 indicates downside risk of about 54% from current levels. See more CRWV analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
a day ago
- Business
- Yahoo
M&A Watch: A String of Hot IPOs Could Spark Second-Half Dealmaking
Another pair of IPO gangbusters played out last week. On the heels of the outright fervor that came with CoreWeave (NASDAQ:CRWV) and Circle (NYSE:CRCL) earlier in Q2, shares of Voyager Technologies (NYSE:VOYG) soared by 82% on their first day of trading. The space- and defense-technology company saw its stock rise by triple digits (percent) intraday last Wednesdayinvestors were clearly excited about the firm's niche. Warning! GuruFocus has detected 10 Warning Signs with CRWV. Voyager partners with firms like Airbus, Mitsubishi, and Palantir (NASDAQ:PLTR) in low-orbit endeavors, and with Aerospace & Defense being among this year's top-performing industry groups, it's easy to see why shares lit up screens early on.[1] While the total IPO count is still low, the window seems cracked open. Following Voyager's stock taking flight mid-week, Chime Financial (CHYM) made its much-anticipated debut, raising $864 million after pricing above its initial estimated range.[2] CHYM was music to the bulls' ears, surging 39% on Thursday. Brokerage platform eToro (NASDAQ:ETOR)[3] and virtual physical-therapy company Hinge Health (NYSE:HNGE)[4] are other notable go-public stories in 2025, raising $310 million and $864 million, respectively, both of which priced above their anticipated ranges. So, animal spirits are alive and well, right? Not so fast. According to Wall Street Horizon's data, dealmaking numbers remain depressed. Total M&A announcements are merely flat on a year-on-year basis, continuing a trend that began some three years ago, after the capital markets boom of late 2020 and throughout 2021. Still-Sluggish M&A Trends Heading into 2H 2025 Source: Wall Street Horizon The hope was that a more favorable administration in the White House and a business-friendly Congress would get the ball rolling with looser regulations, fueling corporate decision-makers to shake hands and ink agreements. That bullish backdrop has not panned out. Instead, tariffs make the macro environment uncertain, and CEOs and CFOs are apparently unwilling to strike deals. Still, with massive rallies in some recent IPO stocks, bankers' hopes may just be rekindled. It's not a total M&A malaise, though. 2025 has brought about a rash of smaller buyouts valued at under a few billion dollars. In the first quarter, PepsiCo (NASDAQ:PEP) agreed to buy prebiotic soda brand Poppi for $1.6 billion. In the mortgage space, Rocket Cos. (NYSE:RKT) purchased Redfin (NASDAQ:RDFN) for $1.75 billion. Then, just last month, retailer Dick's Sporting Goods (DKS) scooped up Foot Locker (NYSE:FL) in a $2.4 billion cash and debt transaction. The shoe space is indeed kicking up activityrecall in early May that private equity firm 3G Capital agreed to buy Skechers (SKX) for $9.4 billion. In the tech space and during the throes of earnings season, Salesforce (NYSE:CRM) struck an $8 billion deal to purchase Informatica (INFA), bolstering its AI capabilities. To close out Q2, other deals have caught investors' attention, with the most notable being Brown & Brown's (BRO) $9.8 billion acquisition of Accession Risk Management. In the Health Care sector, BioNTech (BNTX) expanded its portfolio with the acquisition of CureVac (CVAC), a $1.25 billion equity deal, marking the end of a decades-long rivalry. Overseas, luxury goods maker Kering recently acquired Lenti, an Italian eyewear manufacturer.[5] Are these the blockbuster megamergers everyone longed for a year ago? Certainly not, but it does prove that the environment can be conducive to risk-taking under the right circumstances. Moreover, with peak tariff fear hopefully in the rearview mirror, at least according to the Economic Policy Uncertainty Index, the back half of 2025 might just feature an M&A rebirth.[6] Along with cooling trade-war concerns, a more upbeat outlook on the economy would likely spur deals. We've seen strategists reduce their recession forecasts, and online prediction markets suggest a less than one-in-three chance of a two-quarter US economic contraction this year.[7] More confidence at the macro level could help boost the appeal of buyouts and partnerships. And with central banks cutting interest rates at a fast clip (the US Federal Reserve notwithstanding), an easing of global monetary policy may make borrowing cheaper, enabling more leveraged deals and refinancing. Citi's head of banking expects more private-public get-togethers, which may offer a twist on the longed-for M&A upcycle.[8] The second quarter's final few trading days might actually present fresh breadcrumbs on the M&A pipelines heading into Q3. Ahead of Independence Day in the US, there's an active slate of shareholder meetings scheduled. Such events bring together stakeholders, and management teams present their strategic initiatives, which may include hints at key investments, such as M&A. Our data reveal that more than 1,800 Annual General Meetings will take place or have already occurred this month. Shareholder Meeting Volume Remains High Through June Source: Wall Street Horizon If you're looking for clues on overall C-suite vibes, you might want to monitor The Conference Board's Measure of CEO Confidence, which plunged in the second quarter to its lowest level since Q4 2022a time when recession fears were extremely high. It was the largest quarter-on-quarter decline in the survey's history, which dates back to 1976.[9] It's reasonable to expect a recovery in the next quarterly update in August, and if such a rebound comes to pass, then it may signal a greater collective risk appetite. Dealmaking isn't dead. There has been a steady diet of small to medium-sized mergers and acquisitions, but an outright M&A bonanza has simply not materialized. Global activity is also not all that bad, with significant corporate moves having been inked this quarter in Europe and Asia. But with an emerging IPO wave sweeping Wall Street, macro conditions may be shifting in favor of larger M&A transactions in the second half. 1 Voyager Technologies Rises in Debut, Signaling Improving IPO Market, The Wall Street Journal, Josh Beckerman, June 11, 2025, Digital bank Chime debuts advance wage product ahead of anticipated IPO, Reuters, Hannah Lang, May 15, 2024, Stock trading app eToro pops 29% in Nasdaq debut after pricing IPO above expected range, CNBC, Samantha Subin, May 14, 2025, Hinge Health prices IPO at $32, the top end of expected range, CNBC, Ashley Capoot, May 21, 2025, Kering Buys Italian Manufacturer Lenti in Eyewear Push, The Wall Street Journal, Andrea Figueras, June 10, 2025, Economic Policy Uncertainty Index for United States, Federal Reserve Bank of St. Louis, June 17, 2025, Recession this year?, Kalshi, June 17, 2025, Citi expects banking fees, trading revenue to climb despite US tariff "anxiety", Reuters, Tatiana Bautzer, Arasu Kannagi Basil, June 10, 2025, CEO Confidence Declined Significantly in Q2 2025, The Conference Board, May 29, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Could Buying AI Beneficiary CoreWeave Stock Set You Up for Life?
CoreWeave recently went public, and its stock is soaring. Revenue is growing quickly, but profits remain elusive. The stock is one to avoid right now due to its high valuation. 10 stocks we like better than CoreWeave › Artificial intelligence (AI) is changing the game for many sectors. Cloud computing is no exception. The outsourced data center and computing strategy that has steadily gained market share in the last two decades is now seeing accelerating growth because of AI, which requires an immense amount of compute to train and operate. One cloud company to watch in the AI space is CoreWeave (NASDAQ: CRWV). It is an AI-focused cloud provider that just went public in 2025, with revenue growing 420% year over year last quarter. Could buying this AI stock help set up your portfolio for life? CoreWeave began its operations as a cryptocurrency mining operation. However, in 2019, the company pivoted its operations to cloud computing using Nvidia graphic processing units (GPUs). This decision -- either through foresight or luck -- set up CoreWeave to take advantage of the growing computing demand from AI companies. Buying up tons of the latest Nvidia computer chips, CoreWeave has been able to offer a cloud computing service built specifically to focus on AI. As a start-up, this has allowed it to operate much more nimbly than the big players in the space, such as Amazon Web Services (AWS), leading to contract wins and spending flowing to CoreWeave. It currently has an order backlog of $25.9 billion. Revenue is growing rapidly. Sales grew 420% year over year last quarter to $980 million, making CoreWeave one of the fastest-growing companies in the world. With such a large backlog to work through, the company looks set to keep growing at a fast rate and eclipse $10 billion in annual revenue in the near future. It is exciting times for the company, which has led to optimism in its stock price. Just a few years ago, this start-up was not worth much at all. Now it has a market cap of $71 billion. Fast growth from CoreWeave has not come without a price. The company had a $27.4 million operating loss last quarter. This may not seem like much, but when you look at the company's interest expense on debt and capital expenditures, the picture is more extreme. In order to finance its data center build-out, CoreWeave has loaded up its balance sheet with $3.77 billion in current debt and close to $5 billion in long-term debt. This debt had $264 million in net interest expense last quarter, or 27% of the company's revenue, and will be a headwind for a long time as the company tries to scale. Free cash flow is aggressively negative, at a $1.35 billion burn rate just in the first quarter of 2025. That is an annual burn rate of over $5 billion a year. The company needs to scale up spending on its platform quickly to stem this cash burn. With only $2.5 billion in total cash and equivalents on the balance sheet, CoreWeave is going to have to raise money in the near future in order to finance its data center growth plans. CoreWeave fits the classic definition of a high-growth stock that just went through its initial public offering. Investors are rightfully excited about how fast it is growing, but the company is operating aggressively with huge cash burn that presents a risk to its viability if AI spending slows down or stops. What should temper your expectations and make you hesitant to buy this stock is the valuation. At a market cap of $71 billion, the company is trading at over 30 times its trailing-12-month revenue. Yes, if revenue keeps growing at 400% a year, this price-to-sales (P/S) ratio will come down quickly. This is not likely to occur forever, however, as the company is already generating billions in annual revenue. Plus, the company will not have sky-high margins because of all the interest expense it has to pay on its debt. It will likely need to raise more money shortly due to its heavy cash burn. To sum it up, there are a lot of ways for an investment in CoreWeave stock to go wrong. You need rapid growth to continue and a rapid transition to positive cash flow. If this does not happen, the stock will likely perform poorly for investors over the next few years, which is why you should not buy any shares today. 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 $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% 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 June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy. Could Buying AI Beneficiary CoreWeave Stock Set You Up for Life? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
a day ago
- Business
- Business Insider
CoreWeave (CRWV) Bolsters its Growth Story with New AI Cloud Products
Artificial intelligence (AI) cloud provider CoreWeave (CRWV) continues to bolster its growth story with innovative products. At the Weights & Biases Fully Connected Conference held on Wednesday, the company launched three new AI cloud software products and capabilities to help customers develop, deploy, and iterate AI faster. CRWV stock has rallied about 112% over the past month, reflecting investor optimism about the demand for the company's AI infrastructure. Confident Investing Starts Here: CoreWeave Launches New AI Cloud Products CoreWeave, which acquired AI developer platform Weights & Biases in May 2025, launched three new products – Mission Control Integration, W&B Inference, and W&B Weave Online Evaluations, to enable more developers to build AI models on its cloud platform. The launch of these products marks the first software integration between the two companies following the acquisition. The AI cloud computing platform highlighted that these capabilities integrate CoreWeave's infrastructure with Weights & Biases' intuitive tooling to empower AI engineers in training models, performing inference efficiently, and monitoring AI applications. CRWV's Continued Innovation to Boost Demand CoreWeave's efforts to offer innovative products to customers could further strengthen the demand for its platform. Powered by Nvidia's (NVDA) GPUs (graphics processing units), CoreWeave is well-positioned to capture the massive demand for computing from AI companies. This high-growth stock has rallied 325% to $170 from its IPO (initial public offering) price of $40, thanks to optimism about its prospects amid the ongoing AI wave. However, several analysts are concerned about CoreWeave's high cash burn and lofty valuation. Earlier this week, Bank of America analyst Bradley Sills downgraded CRWV stock to Hold from Buy, citing valuation concerns. Is CRWV a Good Stock to Buy? Overall, Wall Street has a Moderate Buy consensus rating on CoreWeave stock based on six Buys, 11 Holds, and one Sell recommendation. The average CRWV stock price target of $78.53 indicates downside risk of about 54% from current levels.
