Latest news with #RaimoLenschow
CNBC
3 days ago
- Business
- CNBC
Nvidia-backed CoreWeave is plummeting after earnings. Here's what analysts have to say
CoreWeave's latest quarterly results surpassed Wall Street's expectations, and while analysts reacted favorably to the results, an upcoming lock-up expiration was another matter. CoreWeave – which rents out Nvidia chips to companies – posted second-quarter revenue of $1.21 billion, above the $1.08 billion that analysts surveyed by LSEG had estimated. The company also issued better-than-expected forward guidance. While CoreWeave shares shares more than doubled in the past three months, soaring 107%, the stock was down 12% in early trading Wednesday. CRWV 1D mountain CRWV, 1-day Some analysts said that the move lower could be tied to lock-up expiration effective at the close of the market on Thursday – when insiders will be allowed to start selling shares following the company's March initial public offering – which could also affect CoreWeave's planned takeover of Core Scientific . Nvidia owned about a 5% stake in CoreWeave at the time of its IPO. "This could have direct implications for the announced all-stock acquisition of CORZ as the implied valuation is directly tied to the performance of CRWV's stock," said Citizens JMP analyst Greg Miller, who rates CoreWeave a market perform. "As such, we believe any downward pressure resulting from increased share supply or insider selling could affect the deal dynamics and increase investor opposition." While the lock-up expiration adds one element of uncertainty, investors may also be questioning CoreWeave's operating cash flow and planned capital spending, which "again disappointed in-quarter," Barclays analyst Raimo Lenschow (equal weight) said. In fact, most of the Street only has a neutral view of CoreWeave, with 16 of 24 analysts rating it a hold rating, according to LSEG. Only five rate it a strong buy or buy. Here's what other analysts said about CoreWeave on the heels of its results. Morgan Stanley: equal-weight rating, $91 price target Analyst Keith Weiss' target implies downside potential of almost 39% from Tuesday's close. "Bottom line, accruing and expanding large contracts from the most demanding GenAI users provide strong validation of CoreWeave's strong positioning for the ramping GPU build-out, broadening the customer base likely proves key to increasing investor confidence in the durability of this growth. … While we remain on the sidelines awaiting further evidence of the broadening of the software story at CoreWeave, for investors with strong conviction in the build-out of the GPU economy and longer-term investment horizons, CRWV should be considered as a core holding." JPMorgan: Overweight, $135 Analyst Mark Murphy's target calls for more than 9% downside compared with where CoreWeave closed Tuesday. "The fundamental drivers and business trends remain very solid, with the company speaking to strong demand that is outstripping supply and conveying robust pipeline momentum. … Net-net, there could be a wide range of outcomes for CoreWeave. For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors. If we end up with heightened economic volatility, CRWV shares would probably suffer disproportionately due to risk-off positioning. However, our sense is that investors are pricing in the glass-half-empty view more than the other view." Citigroup: buy, $160 Analyst Tyler Radke sees more than 7% upside potential. "CoreWeave notched another impressive revenue beat with slightly greater $ upside vs. last quarter and a strong Q3 revenue/FY25 guidance raise (+$159M). Though a strong revenue performance, the booking/capex figures were not as spectacular with incremental backlog additions (ex previously announced OpenAI contract) at just $200M, while profitability was mixed (EBIT beat but EBIT $s reiterated for the full year on higher spending). That said, guidance implies a significant ramp in capex/revenue acceleration in Q4 which is likely driven by Blackwell and significant data capacity online, which we see as a positive catalyst ahead. … we'd expect shares to be volatile but expect weakness to be bought with AI demand remaining strong and revenue acceleration ahead." Bank of America: neutral, $168 Analyst Brad Sills' target implies about 13% upside. "While the magnitudes of the Q2 topline beat and Q3 raise were slightly below the Q1 print, results were solid, validating that CoreWeave remains well positioned as a leading AI infrastructure vendor. … the lockup expires on Friday, which is likely to place pressure on the shares … we believe CoreWeave remains well positioned to benefit from a ramping AI infrastructure industry." Stifel: hold, $120 Analyst Ruben Roy's target would equal more than 19% downside. "We remain constructive long term and are encouraged by today's data points, but see near-term upside capped by the potential CORZ related dilution and uncertainty, and the pending lock-up expiration on Thursday."
Yahoo
25-07-2025
- Business
- Yahoo
Barclays Raises ServiceNow (NOW) Price Target, Maintains Overweight
ServiceNow, Inc. (NYSE:NOW) is one of the best SaaS stocks to buy according to analysts. Barclays analyst Raimo Lenschow has lifted the firm's price target on ServiceNow, Inc. (NYSE:NOW) to $1,200 from $1,085, maintaining an Overweight rating ahead of the company's upcoming second-quarter results. The revised target reflects improving sentiment around enterprise software demand and growing optimism tied to recent field checks. In a note to clients, Lenschow noted that while April began on a cautious note, the tone improved notably in May and June, particularly for firms with fiscal calendars aligned to the typical reporting cycle. ServiceNow, with its broad footprint across IT operations and digital workflows, is seen as well-positioned to benefit from this recovery in demand as Q2 earnings near. The company has consistently executed on product expansion, particularly in AI-driven automation and workflow orchestration, which continues to attract interest from large enterprise clients. That momentum could support not just a solid quarterly report but also the potential for management to revise guidance upward, according to Barclays. Shares of ServiceNow have outperformed many software peers in 2024, helped by consistent results and a clear roadmap tied to enterprise digitization. The price target hike suggests Barclays sees further room to run, especially if macro conditions remain stable and enterprise IT budgets continue trending upward in the second half of the year. While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Best Industrial Automation Stocks to Buy for the Next Decade Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Barclays Raises Microsoft (MSFT) Price Target on Strong Software Outlook
Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Analysts Are Tracking Closely. On July 21, Barclays analyst Raimo Lenschow raised the firm's price target on the stock to $550 from $494 and kept an 'Overweight' rating on the shares. The rating affirmation follows a positive outlook on software earnings as Microsoft heads into second-quarter results. It believes the setup for on-cycle reporting software names is positive. April did have some levels of uncertainty, but May channel checks and those of June have been much stronger, as noted by the analysts. Consequently, the firm anticipates solid Q2 prints and a chance for an increase in guidance. A software engineer with headset typing at a computer terminal, surrounded by multiple monitors. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 AI Stocks Investors Are Watching Closely. Disclosure: None.
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Analysts Offer Insights on Technology Companies: Dynatrace (DT) and Pegasystems (PEGA)
There's a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Dynatrace (DT – Research Report) and Pegasystems (PEGA – Research Report) with bullish sentiments. 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. Dynatrace (DT) Barclays analyst Raimo Lenschow maintained a Buy rating on Dynatrace on July 18 and set a price target of $62.00. The company's shares closed last Friday at $53.26. According to Lenschow is a 5-star analyst with an average return of 11.7% and a 59.5% success rate. Lenschow covers the Technology sector, focusing on stocks such as The Descartes Systems Group, CoreWeave, Inc. Class A, and DigitalOcean Holdings. ;'> The word on The Street in general, suggests a Strong Buy analyst consensus rating for Dynatrace with a $63.40 average price target, implying a 19.5% upside from current levels. In a report issued on July 11, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $59.00 price target. Pegasystems (PEGA) Rosenblatt Securities analyst Blair Abernethy maintained a Buy rating on Pegasystems today and set a price target of $59.00. The company's shares closed last Friday at $52.21. According to Abernethy is a 5-star analyst with an average return of 9.1% and a 63.8% success rate. Abernethy covers the Technology sector, focusing on stocks such as Bentley Systems, Cadence Design, and PDF Solutions. ;'> Pegasystems has an analyst consensus of Strong Buy, with a price target consensus of $58.80, a 15.0% upside from current levels. In a report issued on July 15, Wedbush also maintained a Buy rating on the stock with a $68.00 price target.
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Datadog (DDOG): New Buy Recommendation for This Technology Giant
Barclays analyst Raimo Lenschow maintained a Buy rating on Datadog on July 18 and set a price target of $170.00. The company's shares closed last Friday at $145.02. 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. Lenschow covers the Technology sector, focusing on stocks such as CoreWeave, Inc. Class A, Microsoft, and Oracle. According to TipRanks, Lenschow has an average return of 11.8% and a 60.76% success rate on recommended stocks. In addition to Barclays, Datadog also received a Buy from UBS's Karl Keirstead in a report issued on July 16. However, on July 10, Morgan Stanley maintained a Hold rating on Datadog (NASDAQ: DDOG). Based on Datadog's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $761.55 million and a net profit of $24.64 million. In comparison, last year the company earned a revenue of $611.25 million and had a net profit of $42.63 million Based on the recent corporate insider activity of 142 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DDOG in relation to earlier this year. Last month, Olivier Pomel, the CEO of DDOG sold 15,227.00 shares for a total of $1,779,122.68.
