Latest news with #RaimoLenschow
Yahoo
29-05-2025
- Business
- Yahoo
ESTC Beats Q3 Estimates But Barclays Cautious, Cuts Price Target
Barclays analyst Raimo Lenschow recently lowered the price target on Elastic N.V. (NYSE:ESTC) to $124 from $138 and kept an Overweight rating on the shares as part of a Q1 earnings preview. Elastic is a search artificial intelligence company that delivers hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments. The advisory thinks off-cycle software results will mirror the on-cycle names with solid Q1 numbers but cautious guidance. The share price moves will all be about positioning, the analyst tells investors in a research note. A group of software engineers working in an open, futuristic office. In earnings for the third fiscal quarter, the company had posted earnings per share of $0.63, beating market estimates by $0.16. The revenue over the period was $382 million, up over 16% compared to the revenue over the same period last year and smashing analyst expectations by $13.23 million. Total revenue is expected to be between $379 million and $381 million in the fourth fiscal quarter. While we acknowledge the potential of ESTC, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ESTC and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. 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
Yahoo
29-05-2025
- Business
- Yahoo
ESTC Beats Q3 Estimates But Barclays Cautious, Cuts Price Target
Barclays analyst Raimo Lenschow recently lowered the price target on Elastic N.V. (NYSE:ESTC) to $124 from $138 and kept an Overweight rating on the shares as part of a Q1 earnings preview. Elastic is a search artificial intelligence company that delivers hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments. The advisory thinks off-cycle software results will mirror the on-cycle names with solid Q1 numbers but cautious guidance. The share price moves will all be about positioning, the analyst tells investors in a research note. A group of software engineers working in an open, futuristic office. In earnings for the third fiscal quarter, the company had posted earnings per share of $0.63, beating market estimates by $0.16. The revenue over the period was $382 million, up over 16% compared to the revenue over the same period last year and smashing analyst expectations by $13.23 million. Total revenue is expected to be between $379 million and $381 million in the fourth fiscal quarter. While we acknowledge the potential of ESTC, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ESTC and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Barclays Downgrades CoreWeave (CRWV) to Equal Weight, Lifts PT
On Tuesday, Barclays analyst Raimo Lenschow downgraded CoreWeave Inc. (NASDAQ:CRWV) from Overweight to Equal Weight but increased the price target from $70 to $100. This adjustment comes after a 157% rally in the stock since its IPO in March 2025, which was priced at $40 per share. A technician at a sophisticated computer hardware rig, emphasizing the company's chip-manufacturing capabilities. Despite the downgrade, CoreWeave shares traded over 13% higher on Tuesday morning, reaching a fresh high of $116.95. Barclays continues to recognize CoreWeave's role in the GenAI world. However, the firm believes that the stock's valuation could be stretched to move higher off fundamentals in the near term, especially given the absence of close comparable peers in the AI infrastructure sector. Barclays also cautions that the current valuation may not be sustainable without continued performance. CoreWeave's performance is partly attributed to its strategic partnerships, including Nvidia, which owns ~7% of the company, and other contracts with major clients like OpenAI and Microsoft. In Q1 2025, CoreWeave reported a 420% year-over-year revenue growth and reached $981 million. For Q2, the company projected sales of $1.06 to $1.1 billion. CoreWeave Inc. (NASDAQ:CRWV) operates a cloud platform that scales, supports, and accelerates GenAI. It builds the infrastructure that supports compute workloads for enterprises. While we acknowledge the potential of CRWV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWV and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
CNBC
27-05-2025
- Business
- CNBC
CoreWeave gets its first downgrade since IPO
Barclays is moving to the sidelines on CoreWeave after the stock's massive rally since going public. The firm downgraded CoreWeave to equal weight from overweight on Monday. It did raise its price target to $100 per share from $70, but that implies upside of just 3%. CoreWeave has been on a tear since its initial public offering on March 28 . In that time, the stock has surged 156.9%. The company priced its IPO at $40 per share. In May alone, shares have soared 148%. Analyst Raimo Lenschow said he's optimistic on the stock long term, but added that the short-term upside is limited. CRWV YTD mountain CoreWeave stock in 2025. "At current levels, CoreWeave is trading at a 41x EV/EBIT CY26 multiple (assuming ~$31.4bn in gross debt in CY26), and while we expect growth to remain strong, we are not sure there are fundamental arguments to push this much higher, with the company trading at a healthy premium already to the rest of the space," Lenschow said. "We continue to like CRWV for its long-term opportunity and exposure to the GenAI theme, but given valuation and lacking a near-term catalyst, see limited upside in the near-term from here." The AI cloud computing company's IPO was the largest in the tech sector since 2021. The firm is backed by AI darling Nvidia and rents out access to the chipmaker's graphics processing units to peer technology companies. "It is important not to undersell CoreWeave as one of the first pure-play GenAI stories in software," Lenschow said. "The company addresses a large TAM across both training and inference workloads, and we continue to see a strong growth opportunity for the business in the near- and medium-term, with the 420% y/y revenue growth in Q1 evidence of healthy momentum." Several Wall Street shops last month issued bullish ratings on the stock last month , after a blackout period ended. JPMorgan, Bank of America and Barclays were among those who initiated coverage with a buy-equivalent rating. However, Barclays is now the first firm on the Street to downgrade the stock.
Yahoo
21-04-2025
- Business
- Yahoo
Analyst unveils surprising Microsoft stock price target after tariff slump
In an environment where recession warnings are growing louder, even Microsoft isn't untouchable. Since late 2022, Microsoft has led the charge in AI infrastructure, thanks to its multibillion-dollar partnership with OpenAI. The race to dominate generative AI sparked a frenzy in data center development, GPU acquisition, and global capacity expansion. But in recent weeks, that expansion has shown signs of slowing. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 'We may strategically pace our plans,' Microsoft's Head of Cloud Operations Noelle Walsh wrote in a LinkedIn post earlier this month. She said Microsoft had undertaken the 'largest and most ambitious infrastructure scaling project' in its history but would now be 'slowing or pausing some early-stage projects.' In the past six months, Microsoft has pulled back from more than two gigawatts of AI cloud capacity across the U.S. and Europe, analysts at TD Cowen noted. In Ohio, a $1 billion data center was recently shelved. Still, analysts say this is less about abandoning AI and more about shifting from the costly infrastructure buildup toward more selective investments. 'Over the past few quarters, Microsoft has 'overspent' on land and buildings but is now going back to a more normal cadence,' Barclays analyst Raimo Lenschow wrote, according to Business Insider. Microsoft's () stock is down 11.8% year-to-date as of April 17, yet this is the smallest drop among the Magnificent 7 tech giants. By comparison, Nvidia () , and Tesla () have shed 22% and 40%, respectively. Compared to Nvidia, Apple () , and Tesla, Microsoft is less exposed to tariff impact as it doesn't deal much in physical or consumer Microsoft's fiscal year 2024, its cloud segment, which includes Azure, was the company's largest revenue contributor, generating about 43% of the company's total revenue. What's more, Microsoft's focus on enterprise customers means that a big portion of its revenue streams is tied to long-term contracts, giving Microsoft extra stability. Still, Microsoft isn't entirely immune to the pressures. In its latest-reported quarter ended December 2024, Microsoft posted earnings per share of $3.23 on revenue of $69.6 billion, both topping consensus estimates. But growth in Azure, Microsoft's AI-focused cloud platform, came in softer than expected, and the company's revenue outlook for the current quarter fell short of forecasts. Revenue from Azure and related cloud services rose 31% year over year, slightly below the 33% growth reported in the previous quarter. Microsoft expects $67.7 billion to $68.7 billion in fiscal third-quarter revenue compared with the $69.78 billion consensus. The company is set to report earnings for its fiscal third quarter on April 30 after market close. Citi analysts led by Tyler Radke lowered the firm's price target for Microsoft to $480 from $497 while maintaining a buy rating, according to a research note on April 17. The price cut aligned with Citi's view for a broader economic slowdown, with analysts moderating estimates broadly by roughly 3 points across Microsoft's three key the March quarter, Citi projects Azure growth will land at the lower end of its 31% guidance, with potential for further slowdown in the fourth-quarter guidance. More Tech Stocks: Top analyst revisits Tesla stock price target as Q1 earnings loom Google's Waymo is planning a move that's downright creepy Analyst reboots Apple stock price target after tariff meltdown Revenue from Microsoft's Intelligent Cloud, including Azure, accounted for roughly 37% of the company's total revenue in the December quarter. "Despite this incremental caution, the decline post Q2 results provides a more palatable entry point, and we continue to view MSFT as a more defensive asset within large cap tech," the analyst in to access your portfolio
