Group 1 - The article discusses a significant reversal in speculative stocks, particularly affecting investors of CoreWeave, Inc. (CRWV) [1] - JR Research is highlighted as an opportunistic investor recognized for identifying attractive risk/reward opportunities, particularly in technology and growth sectors [1] - The investment strategy focuses on growth opportunities with strong fundamentals and potential for recovery, avoiding overhyped stocks [1] Group 2 - JR Research runs the Ultimate Growth Investing group, which specializes in identifying high-potential opportunities across various sectors with a 18 to 24 month outlook [1] - The group targets growth stocks with robust fundamentals, buying momentum, and turnaround plays at attractive valuations [1]

Core Insights - CoreWeave (CRWV) shares experienced a 16% decline on Tuesday following the company's decision to withdraw its revenue guidance for FY 2025 due to delays in Data Center build-out, which has resulted in revenue being pushed into FY 2026 [1] Company Performance - The withdrawal of revenue guidance indicates potential challenges in meeting previously set financial expectations, which may impact investor confidence and stock performance [1] Industry Impact - The delays in Data Center construction reflect broader issues within the cloud services industry, potentially affecting other companies reliant on similar infrastructure developments [1]

Core Viewpoint - CoreWeave, Inc.'s Q3 2025 results raise concerns about the sustainability of its growth model, indicating that the company's hypergrowth may not be sustainable [1] Financial Performance - The latest results suggest that CoreWeave's growth trajectory is under scrutiny, with analysts questioning the long-term viability of its business model [1]

Core Performance - CoreWeave, Inc. reported record revenues of $1.36 billion in Q3 2025, reflecting a 134% year-over-year increase, and a revenue backlog of $55.6 billion, nearly doubling within a single quarter [1][8] - The company is solidifying its position as a leading cloud provider for AI, focusing on innovation to support the next generation of AI [1] Customer Contracts and Partnerships - CoreWeave secured a multi-year deal with Meta valued at approximately $14.2 billion and expanded its partnership with OpenAI to a total commitment of about $22.4 billion [2] - The company has deepened its relationships with various clients, including Inference.net, Mizuho Bank, NASA JPL, and Poolside, marking its sixth contract with a leading hyperscaler [2] Infrastructure Expansion - The company is rapidly expanding its data centers, adding eight new U.S. data centers and advancing its European expansion, including a significant site in Scotland [3] - CoreWeave is scaling its AI infrastructure, adding around 120 megawatts (MW) of active power to reach approximately 590 MW in total, with contracted power expanding to 2.9 gigawatts in Q3 [3] Financial Outlook and Challenges - Despite strong demand, CoreWeave faces supply chain pressures, leading to a revised full-year 2025 revenue forecast of $5.05 billion to $5.15 billion, down from earlier projections [4] - The company anticipates adjusted operating income between $690 million and $720 million, also lower than previous expectations [4] - Heavy capital expenditures and rising interest costs are additional concerns, with expected interest expenses for 2025 between $1.21 billion and $1.25 billion [5] Competitive Landscape - CoreWeave is facing intense competition in the AI cloud infrastructure space from companies like Microsoft and Nebius Group [5] - Microsoft plans to increase its AI capacity by over 80% in 2025 and is building the world's most powerful AI data center, while Nebius has secured a $3 billion agreement with Meta [6][7] Stock Performance and Valuation - CoreWeave's shares have gained 113.6% over the past year, significantly outperforming the Internet Software industry's growth of 9.2% [10] - The company's shares are trading at a Price/Book ratio of 15.71X, considerably higher than the industry average of 6X [12]

Core Sentiment Shift - Shares of CoreWeave (NASDAQ: CRWV) have experienced a significant reversal in sentiment, moving from a deeply bearish outlook to a neutral-to-bullish stance within a 24-hour period [1] Social Media Influence - The sentiment shift has been notably observed on platforms such as Reddit and X, indicating a change in investor perception and potential market dynamics surrounding the company [1]

Core Viewpoint - Oracle is viewed as a cautionary tale in the AI sector, highlighting irresponsible investment behaviors compared to more stable competitors like Microsoft, Amazon, and Google [2][3][4]. Investment Behavior - Oracle's approach to AI investment is characterized as irresponsible, particularly in borrowing to support capacity for startups, which contrasts with the healthy investment practices of its competitors [4][5]. - The company initially reported a $300 billion backlog, which was later revealed to be primarily from OpenAI, raising concerns about the validity of this demand [4][5]. Financial Performance - Oracle's gross margins in the AI business are significantly lower (30-40%) compared to its core business margins (80%), indicating potential issues with profitability in this segment [5][6]. - The stock price of Oracle has reverted to previous levels, reflecting a loss of optimism and confidence in its growth prospects [6]. Market Position - Despite challenges, Oracle's core business is growing at 5% and has a cloud segment with promising customers, suggesting some stability and potential for future growth [8][11]. - The company is involved with notable clients, including potential ownership stakes in TikTok USA, which could enhance its market position [8]. Valuation Perspective - Current valuation metrics suggest that Oracle's stock is not cheap at 32 times earnings, with a more appropriate valuation being around 25 times earnings, equating to a target price of $200 [10]. - The cloud business, while not as strong as the core business, still holds value, particularly in segments serving large customers like Zoom and ByteDance [11].

Of course, there's the energy question. Uh, can the energy supply required meet the demand. Our next guest is out with a new report projecting up to a 20% shortage of US power for data centers through 2028.Joining us this morning, Morgan Stanley's global head of thematic research, Steven Bird, is with us. Stephen, welcome back. It's good to see you again.>> Thanks so much, Carl. Thanks, Sarah. >> So, is this going to get worse before it gets better.My concern is you can run into so many different snags when ...

Core View - J.P. Morgan analysts maintain that CoreWeave's long-term potential is intact, highlighting a backlog that nearly doubled to $56 billion and significant contract expansions [1] Financial Performance - CoreWeave reported Q3 sales growth of 134% year-over-year, reaching $1.36 billion, and ended the quarter with a backlog of $55.6 billion, up from $28 billion in Q2 [8] - Operating margins decreased to 16% from 21% year-over-year, resulting in a net loss of $110 million [7] - The company reduced its full-year revenue guidance by $150 million to $5.1 billion, disappointing investors [6] Customer and Contract Developments - CoreWeave added notable customers such as CrowdStrike, Poolside, Rakuten, and Jasper, and launched CoreWeave Federal to serve government agencies [1] - Customer concentration improved, with no single client accounting for more than 35% of the revenue backlog, down from approximately 85% at the beginning of 2025 [10] - Significant contract expansions include a $14.2 billion deal with Meta and a $22.4 billion agreement with OpenAI [10] Operational Challenges - CoreWeave had to lower its year-end active power target from above 900 megawatts to over 850 megawatts and cut capital expenditure guidance from $8.5 billion to $13 billion [2] - Delays in construction from a third-party data center provider have forced the company to push some fourth-quarter revenue into 2026 [5][6] Future Outlook - Management anticipates that capital expenditures in 2026 will exceed double the 2025 total of $12 billion to $14 billion to meet growing demand [11] - Analysts forecast revenue growth from $5.1 billion in 2025 to $25.8 billion in 2029, with a potential free cash flow of $5.68 billion by 2029 [13][14] - The average stock price target for CoreWeave is $141.84, indicating potential upside from the current price of about $87 [15]

Core Insights - CoreWeave, Inc. (CRWV) experienced a significant decline in share price following its Q3 2025 results, with a drop of 16.3% in the last session and a total decline of 37.6% over the past month, underperforming the Zacks Internet-Software Market's loss of 6.8% [1][2] Financial Performance - CRWV reported record revenues of $1.4 billion in Q3, exceeding the Zacks Consensus Estimate by 6.8% and reflecting a year-over-year increase of 134% driven by high demand for AI compute capacity [3][7] - The revenue backlog reached $55.6 billion, nearly doubling quarter over quarter, indicating strong future revenue visibility [3][7] - Total operating expenses rose to $1.3 billion from $466.8 million in the previous year, with operating income decreasing to $51.9 million from $117.1 million year-over-year [4] Guidance and Capital Expenditure - The company lowered its revenue guidance for full-year 2025 to between $5.05 billion and $5.15 billion, down from the previous estimate of $5.15 billion to $5.35 billion [8] - Adjusted operating income is now forecasted to be between $690 million and $720 million, reduced from an earlier expectation of $800 million to $830 million [9] - Capital expenditures (capex) are estimated to be between $12 billion and $14 billion, significantly lower than the previous projection of $20 billion to $23 billion [10] Competitive Landscape and Challenges - CoreWeave faces intense competition in the AI cloud infrastructure market from major players like Amazon and Microsoft, as well as emerging companies like Nebius [5][10] - The company has raised $14 billion in debt and equity year-to-date, with interest expenses increasing to $311 million compared to $104 million a year ago [11] Growth Potential and Strategic Initiatives - CoreWeave's GPU-based cloud services are positioned well within the AI infrastructure boom, supported by a substantial backlog and diversified customer base [12][17] - The company is expanding its infrastructure with eight new data centers in the U.S. and further expansions planned in Europe [13][14] - Strategic partnerships with NVIDIA, OpenAI, and Meta Platforms enhance its market position and validate its infrastructure capabilities [16][17] Valuation and Investment Outlook - Despite concerns over high capital expenditures and rising interest costs, CoreWeave's long-term growth potential remains strong, supported by its solid backlog and strategic partnerships [22][23] - The current dip in CRWV stock is viewed as an attractive buying opportunity, with the company holding a Zacks Rank 2 (Buy) [23]

Group 1 - CoreWeave, Inc. (NASDAQ:CRWV) is a computing infrastructure firm specializing in hosting GPUs and hardware for AI software companies, making it a significant player in the AI ecosystem [1] - Jim Cramer highlighted CoreWeave's upcoming earnings and its substantial debt levels, indicating that the performance of the company could influence perceptions about taking on debt in the industry [1] - The CEO, Michael Intrator, has a background in both the Bitcoin and Wall Street sectors, and his ability to manage the company's debt is crucial for its future success [1] Group 2 - There is a belief that while CRWV has potential, other AI stocks may offer better returns with lower risk, suggesting a competitive landscape in AI investments [2] - The article hints at the existence of an extremely cheap AI stock that benefits from Trump tariffs and onshoring, indicating opportunities for investors seeking short-term gains [2]