Latest news with #Coreweave
CNBC
4 days ago
- Business
- CNBC
IPO performance vs. S&P 500 since April market low? It's not even close
Investors may need to wait at least a few more years until they get a crack at OpenAI as a public company, according to Renaissance Capital senior strategist Matt Kennedy, but investors who bought into the AI-led IPO market of 2025 have booked big gains already. Since the April 8 stock market low fueled by fears about President Trump's trade war, the Renaissance IPO ETF has posted a return of nearly 50%, close to doubling the return of the S&P 500 Index. Can that rise continue, or is the IPO market showing the signs of the type of investor euphoria that is setting it up for a big fall? Kennedy, whose firm specializes in IPO research, says what he expects from IPO market in the near-term is a possible "return to normalcy" rather than a repeat of the Covid-era IPO boom of 2020 and 2021 — the "crazy levels," as he put it on this week's CNBC "ETF Edge," when there was a burst of deals which saw far too many pre-profit companies go public through not just IPOs but a wave of SPAC offerings. Kennedy likens the current IPO resurgence to the post-financial crisis era, and specifically, a five-year stretch between 2014 and 2019 during which IPO offerings rebounded. But even that level of sustained pickup in deals, he said, "is going to feel like a very busy market after the past few years." According to Nate Geraci, president of NovaDius Wealth Management, the big gap between the IPO market returns since April and the stock market reflects the broader risk of sentiment, "and what you see is when animal spirits are high, it's typically good for IPOs," he said on "ETF Edge." He pointed to two of the most notable deals from the AI and crypto space: Coreweave and Circle. "Circle is up big since it went public. Coreweave has had huge gains. And when you have companies in areas such as crypto and AI where there is already a lot of investor interest, that will help," he said. It has helped the ETF industry too, according to Geraci, with a "monster year" for inflows into spot crypto ETFs — $26 billion in all, with bitcoin ETFs taking in $19 billion and ether ETFs taking in $7 billion. July alone saw investors add $6 billion to bitcoin funds and $5.5 billion to ether ETFs. Circle had given back a good deal of its gains since going public, but was still up roughly 50% this year before it reported earnings on Tuesday morning, which led to a new surge in the company's stock price. "Circle provided a lot of fuel for the fire," Kennedy said. "There's a saying on Wall Street that when ducks are quacking, feed them, so Circle really accelerated the timeline of a lot of crypto companies waiting to go public," he added. Peter Thiel-backed crypto exchange company Bullish is next in the pipeline, and raised the size of its IPO on Monday, suggesting a $5 billion valuation. Kennedy said there are plenty of other crypto companies that could follow with offerings, including Grayscale and Gemini, which have both filed for offerings, as well as Kraken, which is rumored to be considering an IPO, and Ripple. "There are several names we are watching out for," he said. The fintech resurgence in IPOs extends beyond crypto, with "buy now, pay later" company Klarna expected to move ahead with its IPO in the fall after multiple delays. "They seem pretty definitive about that timing," Kennedy said. Other delayed IPOs are planning to test the market now, too, such as StubHub, which is now poised for a September deal. Coreweave, which reports earnings later this week, has come down from its post-IPO peak, but is still sitting on a 250% gain since its deal. Kennedy said that as with crypto, there are plenty of pre-IPO AI companies waiting for their moment, and that could serve as further momentum for the IPO market activity. He said the current environment, in which AI companies just need to declare themselves open for business to get a billion-dollar valuation is "just crazy," but he added that it will be a "good thing in the long run" for a sustained flow of IPOs in the years ahead. While Kennedy said an OpenAI IPO might not arrive until 2028-2029, there are more than just the biggest-name companies going public that have an AI theme embedded in their business, such as design firm Figma and medtech company Heartflow. These are not AI companies building large language models, but companies where AI is integrated into everything they do, he
Bloomberg
5 days ago
- Business
- Bloomberg
Stock Movers: Elf Beauty, Coreweave, Circle Internet
Browse all episodes Stock Movers: Elf Beauty, Coreweave, Circle Internet Stock Movers Elf Beauty, Coreweave, Circle Internet Arrow Right 3:31 On this episode of Stock Movers: - Elf Beauty (ELF) rises after as Morgan Stanley upgraded to overweight from equal-weight, as the bank sees consensus as being 'materially too low.' - Coreweave (CRWV) rise ahead of earnings. The lockup period for CoreWeave stock tied to the company's initial public offering expires Thursday, earlier than usual. - Circle Internet (CRCL) shares rise ahead of earnings. Results are due before market open on 8/12.
CNBC
15-07-2025
- Business
- CNBC
Coreweave stock pops after company announces $6 billion AI data center in Pennsylvania
Coreweave stock climbed more than 9% on Tuesday after the company announced a $6 billion artificial intelligence data center project in Pennsylvania. The commitment includes an initial 100 megawatt data center built in Lancaster, a city about 70 miles west of Philadelphia. The data center will be able to expand to 300 MW. "The demand for high-performance AI compute is relentless," said CoreWeave CEO Michael Intrator in a release, "and CoreWeave is scaling a cloud purpose-built for AI to meet it and strengthen US leadership." The announcement comes as part of the Pennsylvania Energy and Innovation Summit in Pittsburgh hosted by Sen. Dave McCormick, R-Penn., where President Donald Trump, members of his administration and executives are meeting to discuss AI and investment opportunities in the state. Google announced a $25 billion data center and AI infrastructure deal Tuesday in conjunction with the summit, and pledged $3 billion to upgrade two hydropower plants in Pennsylvania. CoreWeave, which rents out access to Nvidia AI chips, has been on a tear since it went public at the end of March. Shares opened at $39 and are up more than 250% since then. The company announced a $9 billion acquisition of data center infrastructure provider Core Scientific last week, a deal that will boost CoreWeave's access to power and real estate. CoreWeave was already a major customer of Core Scientific and the deal will cut $10 billion in future lease commitments, according to the company.
Bloomberg
14-07-2025
- Business
- Bloomberg
CoreWeave Short Sellers See 30% of Profits Lost on Borrow Costs
Coreweave Inc. bears are learning the hard way about the perils of betting against what is one of the most expensive stocks in the world to short. Shares of the cloud computing provider ended Friday about 31% below their June record high, netting short sellers a paper profit of roughly $700 million, according to data from S3 Partners LLC. But nearly a third of those gains will be eaten away by stock borrowing costs.
CNBC
07-07-2025
- Business
- CNBC
CoreWeave to acquire Core Scientific in $9 billion all-stock deal
Artificial intelligence hyperscaler CoreWeave said Monday it will acquire Core Scientific, a leading data center infrastructure provider, in an all-stock deal valued at approximately $9 billion. Coreweave stock fell about 4% on Monday while Core Scientific stock plummeted about 20%. Shares of both companies rallied at the end of June after the Wall Street Journal reported that talks were underway for an acquisition. The deal strengthens CoreWeave's position in the AI arms race by bringing critical infrastructure in-house. CoreWeave CEO Michael Intrator said the move will eliminate $10 billion in future lease obligations and significantly enhance operating efficiency. The transaction is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approval. The deal expands CoreWeave's access to power and real estate, giving it ownership of 1.3 gigawatts of gross capacity across Core Scientific's U.S. data center footprint, with another gigawatt available for future growth. Core Scientific has increasingly focused on high-performance compute workloads since emerging from bankruptcy and relisting on the Nasdaq in 2024. Core Scientific shareholders will receive 0.1235 CoreWeave shares for each share they hold — implying a $20.40 per-share valuation and a 66% premium to Core Scientific's closing stock price before deal talks were reported. After closing, Core Scientific shareholders will own less than 10% of the combined company.
