CRWV

- Roundhill Investments' Drew Pettit said neocloud companies such as CoreWeave and IREN are under pressure, while some parts of the AI trade could remain resilient. - JonesTrading's Mike O'Rourke said SpaceX and Meta's capital expenditure plans will be important indicators for AI infrastructure, semiconductor and memory demand. - CappThesis founder Frank Cappelleri identified roughly $140 as a key technical level for SPCX stock ahead of the company's earnings report. Investors are rotating toward cash-rich technology giants and away from debt-dependent AI plays amid funding concerns, analysts said on Tuesday, with earnings from SpaceX (SPCX), Meta Platforms (META) and Netflix (NFLX) set to put the broader tech trade in focus this week. "Big concern to us is the funding," Drew Pettit, chief investment strategist at Roundhill Investments, said during an interview with CNBC. "People are looking for the quality part of the trade right now in AI." See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox According to Pettit, neocloud companies like CoreWeave (CRWV), Iren (IREN) and others are among the businesses facing pressure. Pettit said these stocks were "in the crosshairs," adding that some parts of the broader AI trade could remain resilient. CRWV stock fell over 4.5% in pre-market trade on Tuesday after hitting an over one-year low in the previous session. It was among the top trending tickers on Stocktwits at the time of writing, with retail sentiment trending in 'extremely bullish' territory over the past day, accompanied by chatter at 'extremely high' levels. Pettit pointed to the Magnificent Seven (MAG 7) technology stocks as one area that could fare better than more financing-dependent businesses. "MAG 7, for example. The funding there isn't from debt. They have a bunch of cash," he said, adding that these companies had also benefited from years of easy financial conditions. Meanwhile, Mike O'Rourke, chief market strategist at JonesTrading, stated that elevated earnings expectations could leave stocks vulnerable if companies deliver cautious outlooks. "If the commentary is not good and earnings expectations are high for everything, you're going to see pockets of weakness," he said. "I think the rate sensitives are where you got to be worried." He singled out autos and homebuilders as sectors particularly exposed to higher borrowing costs. SpaceX is among the companies investors are watching as earnings season gathers pace, with its planned investment in AI computing capacity offering a test of the spending required to expand the industry. It is scheduled to report earnings after the bell on Tuesday, with Wall Street expecting earnings per share (EPS) of $0.13 on revenue of $12.99 billion, according to Koyfin data. O'Rourke said SpaceX's potential data-center expansion and Meta Platforms' capital expenditure plans could be important signals for the broader AI trade, including semiconductor and memory stocks. "If they're going to build out, you know, up to 10 gigawatts of data center capacity next year, that capex number is going to be huge," he said of SpaceX. O'Rourke estimated that Meta's capital expenditure growth could be around 40%, while SpaceX's spending could rise by well over 100% next year. He also expects the companies' results and guidance to carry added weight because they are reporting ahead of several other large technology companies. "These numbers are going to be key to earnings season, especially because they're coming before all those other big, high-quality Mag Seven names," he said. Meta Platforms is expected to report EPS of $6.60 on revenue of $63.34 billion. In pre-market trade on Tuesday, META stock fell 0.65%, while SPCX stock dropped as much as 1.3%. Both saw retail sentiment trending in the 'bearish' zone over the past day on Stocktwits. Frank Cappelleri, founder and president of CappThesis, said SpaceX's stock chart had looked bullish and flagged $140 as the level to watch. He said the price had been tested the previous week and also represented a 50% retracement of the stock's move from August to October. "Below that is really not that much," he said. Cappelleri also pointed to Netflix , which is also scheduled to report results after market close on Tuesday, as a potential test for the broader communication services sector. According to him, a recovery in Netflix could also help the Communication Services Select Sector SPDR Fund (XLC), which Cappelleri said had been trying to break out of a bullish chart pattern. Wall Street is expecting Netflix to report EPS of $0.82 on revenue of $12.8 billion. On Stocktwits, retail sentiment around NFLX improved to 'neutral' from 'bearish' territory over the past day. Read also: Nvidia Reportedly Sees Alibaba, ByteDance, Tencent Order $35B In RTX PRO 5500 Chips Amid US Export Curbs For updates and corrections, email newsroom[at]stocktwits[dot]com. Prabhjote Gill has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - HOOD Stock Rises Overnight: Market 'Underappreciates' The Robinhood Story, Says Analyst - NFLX Stock Tumbles Overnight: Co-CEO Wants Netflix To Be Last Service Customers 'Ever Cancel', Says Live Events 'Drive New Membership' - SPCX Stock Jumps Overnight: Musk Teases $1 Trillion Revenue By 2028 — Analyst Sees 95% Tesla Merger Odds In 2 Years

Nvidia Corporation (NASDAQ:NVDA) has slipped after a rough two weeks for AI stocks. But overall, the stock remains on the radar of major investors. Two famous billionaires in the hedge fund industry held it in the second quarter, and it ranks first in our list of 7 AI stocks billionaires Ken Fisher and Paul Tudor Jones were buying. Nvidia is expected to report earnings in November, so investors are asking if the dip is a chance to buy. What Pulled Nvidia Lower Nvidia fell more than 3% on October 14 as worries about AI debt hit chip stocks, and it slid again the next day. CoreWeave, a cloud company that rents out Nvidia chips and carries heavy debt, lost about 25% last week as its bonds sold off. Hotter inflation data pushed Treasury yields above 5%, which makes it more expensive to finance data centers. Chip stocks bounced on Monday after nine straight losing days, and Nvidia now trades around $218 a share, below the record high it reached in early October. We covered whether Nvidia still has room to run after that run. Why Bulls Keep Buying Nvidia sells the chips every big AI project needs, and it has locked up the scarce parts to keep selling them. Management expects revenue to grow about 70% in fiscal 2028, and Nvidia more than doubled its purchase commitments for memory and manufacturing capacity in one quarter to deliver that growth. Customers keep asking for more computing power than they can get. Microsoft's Azure cloud grew 43% in its latest quarter, and customers want more capacity than the company can supply, which we covered in our look at whether Microsoft's AI spending is paying off. Fund managers keep adding to the stock. L1 Capital raised its Nvidia stake in the second quarter and now counts it among its five largest holdings, according to its investor letter, which we covered in Nvidia Strengthens with Improving AI Capabilities and Stronger Capital Expenditure. NZS Capital also added Nvidia back to its growth equity strategy, and we covered the rationale for adding back the stock. The number of hedge funds holding Nvidia rose to 285 in the second quarter from 275 in the first, according to Insider Monkey's database. What Worries the Bears Nvidia's customers pay for much of the AI build with borrowed money, and the stock suffers when lenders get nervous. CoreWeave's bond yields climbed to about 15% last week, and most neocloud providers will cease to operate independently by 2030, Gartner said in a report. Nvidia owns about 10% of CoreWeave and has agreed to buy any capacity it cannot sell through 2032. Nvidia also agreed to provide credit support for an OpenAI data center project in Ohio, so a slowdown in AI spending would hit it from both sides. Its biggest customers are also building their own chips. Microsoft unveiled its third-generation Maia chip, which we covered in our look at whether Claude was right about Microsoft. What to Watch on Earnings Day Nvidia beat analyst earnings estimates in the last report, and investors will look for another beat. They will also watch whether management confirms the 70% growth outlook for fiscal 2028, how the Vera Rubin chip ramp goes, and whether gross margin dips to the 71% to 72% range guided for the fourth quarter. Customer payment timing matters too, since days sales outstanding rose to 60 in the second quarter. Holding Nvidia through swings has been hard for even the best investors. Stanley Druckenmiller has said he regrets selling too early, which we covered in his list of the 10 best AI stocks. Nvidia (NASDAQ:NVDA) looks like a buy on the dip if its customers keep finding the money to pay for chips. Investors who worry about AI financing can wait for the November report to see how that demand holds up. While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy Disclosure: None. Follow Insider Monkey on Google News.

The hot takes on what AI buildout CoreWeave's (CRWV) financial future holds continue to pour in from Wall Street. Some on the Street have defended CoreWeave and its debt-using business model. Others have used the stock's rout to move to the sidelines. And then we have HSBC, which thinks the business is poised to shock the markets with its ugliness over the next few years. In a new note, HSBC analyst Abhishek Shukla slapped CoreWeave's stock with a $39 price target, about 34% below current trading levels. "Our 2028-30 non-GAAP EPS estimates are 50-70% below consensus. We expect CoreWeave to earn a long-term non-GAAP operating margin of 15-16% vs management guidance of c25%," Shukla said. The reason for the earnings bearishness stems from rising angst over how CoreWeave funds its business, not worries of an AI slowdown. "We note that yields on CoreWeave's bonds are now in the 14-15% range, suggesting market concerns over credit worthiness. This may hamper the company's ability to finance speculative capacity or capacity that is backed by only short-term contracts. This removes one key upside for the stock, in our opinion. We also note that consensus is assuming a significant reduction in the interest rate that CoreWeave will need to pay on its debt, which seems increasingly unlikely to us," adds Shukla. Shukla expects CoreWeave's loss per share in 2027 to be 13.3% higher than analyst estimates. For 2028, 2029 and 2030 he sees CoreWeave's EPS to be 53.7%, 70.6% and 64.3% below consensus estimates, respectively. By the end of 2030, Shukla believes CoreWeave will have $92 billion in net debt compared to a year-end 2026 estimate of $46.9 billion. CoreWeave's stock has been torched in October to the tune of 29%. The company's corporate bonds across maturities continued to be dumped amid fears of an AI slowdown and its implications for the company's precarious balance sheet. That has triggered a subsequent sharp sell-off in the stock. The rise in yields on CoreWeave's bonds even spurred Elon Musk to post "Yikes" on X in response to a post by venture capitalist Chamath Palihapitiya last week. Meanwhile, in a new report, Gartner forecast that by 2030, "cost pressure and a lack of a differentiating business model will force over 80% of neocloud providers to cease independent operations." CoreWeave is a neocloud. The report was essentially akin to yelling "fire" in a crowded theater. The company does have its defenders, however. "This [move in CRWV] is more sentiment driven. This is not about fundamentals. This is not about them not being able to pay for the debt, et cetera. This is more sentiment driven and the sentiment needs to change. And what's going to happen is, as always, there's going to be a period of concern. And then the fundamentals will kick in, meaning revenues, revenue growth," BofA analyst Tal Liani told me on Sozzi Unleashed, saying he stands by his aggressive $140 price target on the stock. Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected]. Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance

- The run-up comes ahead of a busy earnings week that is likely to set the tone for technology stocks and the broader market. - Meta Platforms, Tesla, Lam Research, Texas Instruments, Bloom Energy, Valero Energy, and Netflix are among the top companies set to announce their quarterly prints this week. - Meanwhile, climbing oil prices amid growing geopolitical uncertainties have put some downward pressure on markets. U.S. stock futures climbed into positive territory late Monday as technology stocks rebounded after a sharp selloff last week. Meanwhile, markets are keenly watching the third-quarter (Q3) earnings season unfold, with about 70 S&P 500 companies slated to report earnings this week. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox As of 11:13 p.m. EDT, Dow futures were up about 0.25%, while the S&P 500 futures gained 0.21% and the Nasdaq-100 futures climbed 0.15%. On Monday, the three benchmark indexes closed mixed. The Nasdaq Composite led the climb, adding more than 290 points to close 1.11% higher. The S&P 500 climbed 0.41% at close, while the Dow Jones Industrial Average fell 0.07%. Index | Move | Close Dow Jones Industrial Average | -0.07% | 51,966.03 S&P 500 | 0.41% | 7,690.73 Nasdaq Composite | 1.11% | 26,430.89 Technology and AI stocks were top of mind for markets on Monday as the sector reversed last week's steep selloff. Chip stocks led the climb on Monday. The iShares Semiconductor ETF (SOXX) closed up nearly 2%, while the VanEck Semiconductor ETF (SMH) closed up 1.61%. Nvidia Corp. (NVDA), Micron Technology Inc. (MU) and Advanced Micro Devices Inc. (AMD) all ended the session in green. The run comes ahead of vital Q3 results that will follow this week, which are likely to set the tone for the trajectory of technology shares. "Tech earnings are key this week. Fundamentals are unchanged, but given fragile price action, we turn neutral [on] risk assets and stay neutral duration," Ajay Rajadhyaksha, global chairman of research at Barclays, said in a note, according to CNBC. Katie Stockton, founder of Fairlead Strategies, reportedly said in a note on Monday that the week will be crucial for the S&P 500 and Nasdaq, which need to hold support, while noting that a hold is possible amid widespread, short-term oversold conditions. Meta Platforms (META) and Tesla (TSLA) are due to report Q3 results later this week, while multiple other semiconductor and technology companies, including Lam Research (LRCX) and Texas Instruments (TXN), will also post their results. AI-related power companies Bloom Energy (BE) and Valero Energy (VLO), along with big entertainment companies including Netflix Inc. (NFLX), will also announce their quarterly results. Meanwhile, rising oil prices amid growing geopolitical uncertainty have put downward pressure on markets. Brent crude futures expiring in December were trading at $109.88 a barrel, up about 0.3%, while WTI crude futures expiring in November traded at $103.64 per barrel. Economist Peter Schiff said in a post on X, "Oil rose another 2.5% today. It's almost $104. If you think gas prices are high now, just wait until after the midterms when Trump has to turn off the spigots from the Strategic Petroleum Reserve to keep it from running dry. Oil could hit $150, sending gas prices to record highs." Trump Media & Technology Group Corp. (DJT): Shares of the president's media company were in focus late Monday after the stock slipped 8%, its worst single-day drop since February, as President Donald Trump's approval rating hit a record low. Amazon.com Inc. (AMZN): The company's stock surged nearly 5% at close on Monday and continued to climb higher overnight after Morgan Stanley raised its price target and named it a 'Top Pick.' Cerebras Systems Inc. (CBRS): The AI hardware and supercomputing company was on the retail radar after shares slipped more than 5% on Monday, extending a broader selloff in the sector from last week. CoreWeave Inc. (CRWV): Shares of the neocloud company fell more than 1% in overnight trading late Monday, putting it on track for a third week of declines amid a selloff in software names. Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all climbed overnight. Meanwhile, U.S. long-dated Treasury yields continued above 5%. At the time of writing, the 10-year U.S. Treasury yield was 5.138%, and the 30-year Treasury yield was 5.473%. The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.09% amid 'bullish' sentiment. Asian markets opened lower on Tuesday, with South Korea's KOSPI, Japan's Nikkei 225, China's SSE Composite and Australian stocks all trading lower at the time of writing. For updates and corrections, email newsroom[at]stocktwits[dot]com. Aashika Suresh has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - STX Stock Adds 2% After Morgan Stanley Hikes Price Target To Nearly Double From Current Levels - LION Stock Rallies As Dune Producer Reportedly Puts Offer On The Table For The Hunger Games Studio - Qualcomm To Reportedly Conduct Global Layoffs In Performance-Driven Overhaul

- SpaceX reports earnings after the close on Oct. 20, and short seller Jim Chanos says it will be the largest global neocloud starting in 2027. - SpaceX's capital spending reached $20.9 billion in 2025, about three times the $6.8 billion of cash its operations brought in. - Total debt rose to $24.5 billion at the end of 2025 from $15.4 billion a year earlier, and SpaceX is reportedly seeking $40 billion more to buy Nvidia chips. - Starlink gives SpaceX a cushion that CoreWeave doesn't have, but the report needs to show the compute business starting to pay for itself. SpaceX (SPCX:NASDAQ) reports earnings tomorrow after the close, on a date it only announced late last week. (Most companies give Wall Street weeks of notice.) The setup going in is all about AI. On X, one user argued that if neocloud economics are deteriorating, that's "not so hot for SPCX with its $120T TAM and orbital compute plans." Short seller Jim Chanos replied on Friday: "$SPCX is actually the largest global neocloud, starting in 2027." Quite the label for a rocket company. And the numbers going into tomorrow's report back him up. Nilay Patel, editor-in-chief of The Verge, summed up SpaceX's business on Saturday's episode of the Decoder podcast: "Starlink is the thing that makes profits. Everything else is incinerating money, but investors seem happy with that because the potential payoffs might be huge." You can see the incinerating part in the cash flows. SpaceX's capital spending nearly quintupled, from $4.4 billion in 2023 to $20.9 billion in 2025, while cash from operations rose from $4.5 billion to $6.8 billion. So operations covered about a third of last year's spending, which left free cash flow at negative $14.1 billion. That gap has to be funded somewhere, and SpaceX has been borrowing. Total debt rose by more than half in 2025, from $15.4 billion to $24.5 billion. And more is on the way. The Financial Times [reported](LINK NEEDED) on Oct. 6 that SpaceX is seeking $40 billion to buy Nvidia (NVDA:NASDAQ) AI chips. The package reportedly breaks down as about $10 billion in bank loans and $30 billion in investment-grade debt. If it closes as reported, SpaceX's debt more than doubles from where it ended 2025. Evercore ISI analyst Kutgun Maral even listed "a desire to put updated financials on record ahead of further financing arrangements" among the possible reasons for tomorrow's rushed date. That's why Ryan Detrick, chief market strategist at Carson Group, charted SpaceX's five-year CDS spreads alongside those of Oracle (ORCL:NYSE) and CoreWeave (CRWV:NASDAQ) on Saturday: "This is why worry is building on AI." Still, SpaceX has something CoreWeave lacks: a business that, in Patel's words, "makes profits," and it feeds cash into the build every year. And there's plenty of demand for what SpaceX is building. On Sunday, Musk said SpaceX itself has hit a wall when it "tried to rent inference compute from AWS, GCP" to take load off its training clusters. If even SpaceX can't find spare compute, there's a market for whoever owns it. Building it is the hard part. On Tuesday, Musk replied to a Zerohedge post about data-center debt selling off: "getting money to build complex hardware systems with massive power, cooling & networking is not the same as doing it." Even SpaceX, he added, finds it "very difficult!" I think Chanos is right. SpaceX already spends like a neocloud. Its operations covered only about a third of last year's bill, and debt made up much of the rest. Starlink makes it a sturdier neocloud than CoreWeave, but the credit market's worry is fair until the compute business starts paying its own way. That's what to watch tomorrow: any sign that AI revenue is starting to cover the spending, and what management says about capex and the $40 billion financing. Of course, Chanos said 2027, so one quarter won't settle this either way. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what SpaceX could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value SpaceX for free