Cramer's Lightning Round: 'I'm going to have to take a pass on' Fluence
GE Vernova: "At this point, we're going to wait for GE Vernova to come in."
Nebius: "CoreWeave. Just buy CoreWeave, don't deviate."
Taiwan Semiconductor: "...I would rather just see what they report at this point."
Quantum Computing: "It's a money-losing company, and if we get rid of the fervor for the moment about quantum, you'll be buying that $17 stock at $7. And that's what I worry about the most."
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2 hours ago
- Yahoo
CoreWeave vs. Amazon: Which AI Infra Stock Has More Upside Right Now?
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Let's break down how each company is performing and which one looks like the better investment right now. CoreWeave: A Fast-Growing Pure-Play AI Infra Provider CoreWeave is well-positioned to gain from the AI infrastructure boom. In the last earnings call, management highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. Strategic partnerships with major players like OpenAI and NVIDIA bode well, along with a massive $259 billion revenue backlog. Apart from a $11.9 billion deal with OpenAI, CRWV has added several new enterprise customers and a hyperscaler client. It has signed expansion agreements with many customers, including a $4 billion expansion with a big AI-enterprise customer. CRWV added that the $4 billion expansion agreement signed with a big AI client will be reflected in revenue backlog beginning in the second quarter. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. The stock has declined sharply post its announcement of $9 billion takeover of Core Scientific. Since the announcement on July 7, CRWV has lost nearly 25%. Apart from scrutiny surrounding the company's latest acquisition bid, it also faces other headwinds. CRWV's aggressive capital deployment strategy is a key concern. CRWV expects capex to be between $20 billion and $23 billion for 2025 due to accelerated investment in the platform to meet customer demand. High capex, even with a success-based model, exposes CoreWeave to execution risks if contract revenue does not materialize on time. CoreWeave's aggressive data center buildout is being funded in part by debt, leading to ballooning interest expenses, which can exert pressure on the adjusted net income and potentially affect free cash flow generation. Stiff competition from the likes of AWS and Azure, and intense customer concentration risk remain concerning. CoreWeave's 77% of total revenues in 2024 came from the top two customers. Amazon: Aggressive Expansion AWS is the market leader in the cloud compute space and is now aggressively moving into AI infrastructure. To stay ahead of rivals, Amazon has launched custom AI chips (Trainium and Inferentia) and strengthened partnerships with the likes of NVIDIA while forging new collaborations with other AI developers to train and deploy models on AWS. AWS revenues surged 17% year over year in the first quarter of 2025, with an annualized revenue run rate pegged at $117 billion. AWS backlog reached $189 billion with a 4.1-year weighted average life, offering forward revenue visibility. In the last reported quarter, AWS signed new agreements with major companies, including Ericsson, Adobe, Uber Technologies, Nasdaq, Fujitsu and many others. Amazon highlighted that more than 85% of global IT spending is still on-premises, suggesting immense growth potential for AWS. Its increasing investments in generative AI are likely to continue aiding it in gaining momentum among cloud customers in the near term. More importantly, Amazon's AI business segment now operates at a multi-billion-dollar annual revenue run rate with triple-digit percentage growth year over year. Amazon's strategy focuses on custom silicon development, particularly its Trainium 2 chips, which offer 30-40% better price performance compared to GPU-based instances. The company has also expanded its AI model offerings through Amazon Bedrock and introduced services like Amazon Nova foundation models. AMZN has added the latest foundation models in Amazon Bedrock, including Anthropic's Claude 3.7 Sonnet, Meta's Llama 4 family of models, DeepSeek's R1 and Mistral AI's Pixtral Large. AMZN is ramping up investment to build its technology infrastructure, primarily related to AWS and for custom silicon like Trainium. Moreover, its diversified businesses and stupendous financial resources give it an edge. As of March 31, 2025, cash and cash equivalents were $66.2 billion, while operating cash flow generated in the first quarter stood at nearly $17 billion. However, capacity constraints pose a challenge. Amazon has indicated that AI demand currently outstrips available capacity, suggesting the company could drive higher revenues with additional infrastructure. The intense competition from Microsoft's Azure and Google Cloud is concerning. Heavy capex spend could strain margins if AI returns do not materialize. CRWV Shares vs. AMZN Over the past month, AMZN shares have gained 6.9% while CRWV stock has lost 24.1%. Image Source: Zacks Investment Research Valuation for CRWV & AMZN Valuation-wise, both Amazon and CoreWeave are overvalued, as suggested by the Value Score of D and F, respectively. Image Source: Zacks Investment Research In terms of Price/Book, CRWV shares are trading at 30.22X, lower than AMZN's 8.06X. How Do Zacks Estimates Compare for CRWV & AMZN? Analysts have kept their earnings estimates unchanged for CRWV's bottom line for the current year. Image Source: Zacks Investment Research For AMZN, there is a marginal upward revision. Image Source: Zacks Investment Research CRWV or AMZN: Which is a Better Pick? Amazon remains a more stable and diversified AI cloud/infra bet, with AWS as a high growth engine. AWS is well poised to benefit from AI demand at a massive scale, as it aggressively improves on specialization. CRWV gains from niche specialization in AI infrastructure and strategic alignment with major AI players, but is capital-intensive. AMZN currently sports a Zacks Rank #1 (Strong Buy) while CRWV has a Zacks Rank #4 (Sell). If investors are seeking an AI infrastructure stock with long-term growth potential, Amazon is a better pick in terms of Zacks Rank. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
CNBC
3 hours ago
- CNBC
A tricky earnings season has required two hands on the wheel, and it's not slowing down yet
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks are closing out the week in record territory thanks to five straight positive sessions for the S & P 500 . There are no major headlines driving the market other than President Donald Trump teasing more trade deals ahead of the Aug. 1 deadline for higher tariffs kicking in and perhaps some relief around the "more cordial than expected" tour of the Federal Reserve construction project with Jerome Powell on Thursday. Earnings rewind: This is shaping up to be one tricky earnings season. It all started with the financials, where we saw pullbacks of at least 5% in stocks like Wells Fargo and BlackRock despite upbeat results and forward commentary. Those sellers must be living with regret because both have fully recovered and hit new all-time highs on Friday. The takeaway: The first day's reaction was wrong. This week hasn't gone smoothly either. Sure, we had a big hit on GE Vernova , but Honeywell and Dover both sold off aggressively despite beating and raising. Plus, Capital One Financial has curiously pulled back about 10% from its post-earnings intraday record high on Wednesday. Time will tell, but we think these are more examples of good earnings reports getting misjudged by the market. Even Danaher traded in the $170s per share immediately after its results came out, and now it's back above $200. But when it comes to the portfolio, we often say, "He who defends everything defends nothing." That means that not every dip and pullback reflects a buying opportunity. We must apply rigor and analyze every stock and earnings report on a case-by-case basis. For example, we trimmed our position in Abbott Laboratories earlier this week because the company lowered its growth outlook for the year. The lesson here in these busy earnings weeks is that there are so many headlines flying around — and so many reports to digest — that it's hard for the market to keep up. But if we do the work and listen to the earnings calls, we should be able to figure out where the opportunities are. Next week: A huge week and test for the markets is upon us. Roughly 150 companies in the S & P 500 are scheduled to report earnings, including four of the world's biggest companies. We'll have to see if Club names Meta Platforms , Microsoft , and Amazon can keep the ball rolling like Google parent Alphabet did this week and report better-than-expected results and raise their capital expenditure forecast to add support to the AI infrastructure trade. Also in the portfolio, Starbucks , Bristol-Myers Squibb , Apple and Linde are also scheduled to report. On the data side, it's jobs week, which means on Friday we'll see the July nonfarm payroll report. Before that, there's a Fed meeting announcement on Wednesday and rates are widely expected to remain unchanged. But could Fed Chair Jerome Powell hint at the possibility of rate cuts later this year? That's the big question. And throughout the week, we'll be closely monitoring all trade deal headlines ahead of the Aug. 1 tariff deadline. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Opendoor Technologies Inc. (OPEN): It's A Pump, Not A Dump, Says Jim Cramer
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