logo
There are better ways to invest in AI than in CoreWeave, says D.A. Davidson's Gil Luria

There are better ways to invest in AI than in CoreWeave, says D.A. Davidson's Gil Luria

CNBC3 days ago

Gil Luria, D.A. Davidson head of tech research, joins 'Money Movers' to discuss their call to lower CoreWeave to underperform.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Applied Digital Shares Slide After CoreWeave Sells Out
Applied Digital Shares Slide After CoreWeave Sells Out

Yahoo

time4 hours ago

  • Yahoo

Applied Digital Shares Slide After CoreWeave Sells Out

Applied Digital (NASDAQ:APLD) plunged 8.6% on Friday after a Schedule 13G filing revealed hyperscaler CoreWeave (NASDAQ:CRWV) sold its entire stake in the data-center operator, trimming its beneficial ownership to 0.0%. Warning! GuruFocus has detected 10 Warning Signs with APLD. The exit came despite Applied Digital's recent announcement of two 15-year lease agreements with CoreWeavedeals projected to generate roughly $7 billion in revenue over their lifetimesand the issuance of a warrant on May 28 allowing CoreWeave to buy up to 13,062,521 APLD shares at $7.19 each. In contrast, CoreWeave shares rose about 3% on the day, reflecting investor confidence in its standalone growth trajectory. The news underscores the complex dynamics between landlord-operators and large-scale cloud tenants: while the leases cement Applied Digital's role in the AI-driven data-center boom, CoreWeave's stake sale suggests it may be reallocating capital toward direct infrastructure spending or other partnerships. Applied Digital hasn't disclosed whether any of CoreWeave's warrant shares were exercised prior to the divestiture, leaving open questions about potential dilution or future share issuances. Why It Matters: The swift unwinding of a major tenant's equity position can rattle investor sentiment, even when long-term contracts remain intactraising debate over the balance between partnership revenue and share-price stability. This article first appeared on GuruFocus.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store