imaginima/iStock via Getty Images Back near the end of last year, I decided to upgrade CoreWeave, Inc. ( CRWV ) from a buy rating to a strong buy. While the stock plunged, the company experienced exceptional levels of demand. Furthermore, the long term growth prospects were still intact, and the valuation had contracted. Therefore, I viewed the stock's chance of outperformance as high. While the b...
imaginima/iStock via Getty Images Back near the end of last year, I decided to upgrade CoreWeave, Inc. ( CRWV ) from a buy rating to a strong buy. While the stock plunged, the company experienced exceptional levels of demand. Furthermore, the long term growth prospects were still intact, and the valuation had contracted. Therefore, I viewed the stock's chance of outperformance as high. While the below chart shows what seems to be modest gains since the publication of that article, in reality CoreWeave is now almost 30% above levels seen back then. Today, I will provide an update to see if my bull thesis needs adjusting. Seeking Alpha In the below analysis, it is shown that CoreWeave has a strong long term opportunity. Furthermore, while revenue growth continued to decelerate into Q4, huge backlog growth suggests unsatisfiable demand and helps to justify their CapEx. Even though expense control and debt load are risks, the dirt-cheap valuation shows that there is a good margin for error right now. Therefore, I have decided to maintain my strong buy rating on the stock. Growth Potential CoreWeave Q4 Presentation While CoreWeave is now one of the largest AI cloud names out there, it is important to recognize that their current financial numbers represent just the early stages of compute deployment. As you can see in the above map , they have a significant footprint in the U.S. and in Europe and currently have around 850 MW of active power. With some data centers reaching over a gigawatt of capacity in the world today, it is clear that the company has the potential to see high levels of growth in the coming years. While they have 3.1 GW in contracted power lined up, investors need to keep in mind that the results we are seeing now are just reflective of a fraction of their ultimate target capacity. Moving forward, as contracted power becomes active and the company decides to scale further, financial growth should follow if demand remains as solid as it is right now. Gro...
Baidu announced the resignation of independent director James Ding from the board and several key committees. Ding stepped down as chair of the compensation committee and member of the audit and corporate governance committees. The board has restructured committee memberships to fill these roles and maintain required governance functions. Baidu, listed on NasdaqGS:BIDU, is making this governance c...
Baidu announced the resignation of independent director James Ding from the board and several key committees. Ding stepped down as chair of the compensation committee and member of the audit and corporate governance committees. The board has restructured committee memberships to fill these roles and maintain required governance functions. Baidu, listed on NasdaqGS:BIDU, is making this governance change at a time when the stock trades at $112.53. Shares have seen an 18.0% gain over the past...
Li Auto (NasdaqGS:LI) has introduced a new US$1.0b share repurchase program following weaker recent operating updates, positioning the buyback and the upcoming Li L9 launch as central themes for investors. See our latest analysis for Li Auto. The new buyback and weaker Q1 guidance come after a mixed run for investors, with a 90 day share price return of 5.78% but a 1 year total shareholder return ...
Li Auto (NasdaqGS:LI) has introduced a new US$1.0b share repurchase program following weaker recent operating updates, positioning the buyback and the upcoming Li L9 launch as central themes for investors. See our latest analysis for Li Auto. The new buyback and weaker Q1 guidance come after a mixed run for investors, with a 90 day share price return of 5.78% but a 1 year total shareholder return decline of 31.84%, suggesting longer term momentum has faded even as short term moves turn more...
Owner of Book Punch store and three staff accused of selling copies of a biography of Jimmy Lai, a jailed pro-democracy activist and publisher Hong Kong police arrested a bookstore owner and three shopkeepers on Tuesday for allegedly selling “seditious” publications including a biography of jailed media tycoon Jimmy Lai , broadcaster TVB reported. The owner of the Book Punch store, Pong Yat-ming, ...
Owner of Book Punch store and three staff accused of selling copies of a biography of Jimmy Lai, a jailed pro-democracy activist and publisher Hong Kong police arrested a bookstore owner and three shopkeepers on Tuesday for allegedly selling “seditious” publications including a biography of jailed media tycoon Jimmy Lai , broadcaster TVB reported. The owner of the Book Punch store, Pong Yat-ming, and three staff were accused of selling copies of The Troublemaker, a biography of Lai by one of his former business directors, Mark Clifford, TVB reported. Continue reading...
Andrii Yalanskyi/iStock via Getty Images Investment Rating - "Buy" Blue Owl Capital Corporation ( OBDC ) is currently the second-largest business development company (BDC) in the United States by total assets, according to the firm's investor relations data . The most recent IR update shows OBDC's portfolio size is ~$16.5 billion, spread across 234 companies in 30 portfolio industries: OBDC's Q4 I...
Andrii Yalanskyi/iStock via Getty Images Investment Rating - "Buy" Blue Owl Capital Corporation ( OBDC ) is currently the second-largest business development company (BDC) in the United States by total assets, according to the firm's investor relations data . The most recent IR update shows OBDC's portfolio size is ~$16.5 billion, spread across 234 companies in 30 portfolio industries: OBDC's Q4 IR update Like most of its peers, OBDC's net asset values have been in steady decline since mid-2024 as expectations for rate cuts increased amid the cool-off in forward inflation rates. Given that over 96% of OBDC's debt portfolio was in floating-rate loans, the rate cutting directly compressed asset yields, leading to lower net income from the portfolio assets. Investors started to question the sustainability of OBDC's generous dividend yield, which is why it's currently standing at the highest average level since at least 2019, according to Seeking Alpha (the higher the yield, the riskier the investment in the BDC world): Seeking Alpha In addition to that, there were some credit-related markdowns and unrealized depreciation on a small number of watch-list names, as the management noted, which caused OBDC's NAV reduction in the latest quarters. If we add the recent rise in redemption requests at some non-public BDCs to the equation, we'll get a perfect storm for OBDC - that's why the stock is down so much , and it keeps falling lower. Seeking Alpha However, I think the saying that "it's usually darkest before the dawn" fits well in this case. In my opinion, OBDC's portfolio looks good in general, and its NAV reduction lately doesn't seem to pose a massive risk to this BDC's investors - the recent institutional asset sale at near par proves that. Also, I think that the rise in inflation expectations that we got following the US-Iran conflict and higher oil prices suggests that the market's prevailing assumption of OBDC's collapse in NII and potential cuts in dividend payout...