SlobodanMiljevic/iStock via Getty Images Investment Thesis CoreWeave, Inc. ( CRWV ) reported strong revenue growth in Q1 '26 , and the market is reacting negatively for the wrong reasons. Last quarter's results confirm my expectations of deepening losses, reinforcing my belief that the company is underwriting its cloud contracts at extremely thin margins that don't justify the effort. If anything,...
SlobodanMiljevic/iStock via Getty Images Investment Thesis CoreWeave, Inc. ( CRWV ) reported strong revenue growth in Q1 '26 , and the market is reacting negatively for the wrong reasons. Last quarter's results confirm my expectations of deepening losses, reinforcing my belief that the company is underwriting its cloud contracts at extremely thin margins that don't justify the effort. If anything, the disappointing revenue outlook should be considered positive because it opens the door for speculation that the company is becoming more selective regarding its underwriting. I don't believe this is what happened. Instead, I believe that this is just normal deployment and timing issues tied to construction and operations. This is not in defense of the company, but the truth is there are a lot of moving parts when building a data center, let alone multiple data hubs, each requiring power supply arrangements, GPUs, and networking, many of which are in short supply, subject to delays, and other operational factors. If you believe in the company's business model, Q1 '26 results are not a reason to sell. However, if you're skeptical about core operations and contracts with hyperscalers, this quarter's deepening losses confirm the thesis laid out in the last piece. Recent Results CoreWeave reported spectacular Q1 '26 revenue growth . Sales exceeded the $2 billion mark, more than double Q1 '25 sales. Sales tailwinds are well-known - an AI infrastructure buildout, which I believe is lucrative for almost everyone, except for Neoclouds. Generative AI is profitable for hyperscalers, and I don't believe there is a bubble. I think CoreWeave's losses are a result of bad management and contract underwriting, but I see increasing evidence that it is an exception to the rule in what otherwise is a very profitable industry. CoreWeave Operating losses widened, and loss margin deepened in the quarter, from -3% to -7%, while net loss margin deepened from -32% to -36%. One would have thought...
Venezuela announced emergency measures to stabilize its power grid after electricity consumption hit a nine-year high this week, reviving memories of blackouts and rationing that once crippled the economy. The Electricity Ministry didn’t detail the measures, but urged the private sector to conserve power and reiterated a ban on energy-intensive crypto mining. It said rising temperatures and increa...
Venezuela announced emergency measures to stabilize its power grid after electricity consumption hit a nine-year high this week, reviving memories of blackouts and rationing that once crippled the economy. The Electricity Ministry didn’t detail the measures, but urged the private sector to conserve power and reiterated a ban on energy-intensive crypto mining. It said rising temperatures and increased economic activity were fueling excessive consumption, which it said reached more than 15,500 megawatts on Thursday. The renewed strain on the power system threatens to complicate the government’s push to revitalize the oil, mining and industrial sectors after years of underinvestment in its hydroelectric dams and transmission lines. Much of the country is already subject to rolling blackouts, especially outside the capital Caracas. In the western oil-producing state of Zulia for example, residents face outages lasting six hours a day or more. “We are working hard to recover and stabilize the system. We all need to cooperate,” Electricity Minister Rolando Alcalá said on state TV on Thursday. “The national electrical system is the engine, the core factor, for all development activities in a country.” Recurring ads on state TV use animated characters to ask Venezuelans to unplug home appliances when not in use. The measures recall the worst of Venezuela’s crisis in 2019, when a massive blackout darkened the country for nearly a week, paralyzing hospitals and airports. Outages remain common, with factories outside Caracas frequently disrupted by sudden voltage drops and extended cuts causing some to ask staff to work overnight. The latest warnings cloud investment plans announced since Nicolás Maduro ’s ouster in January, including efforts by acting President Delcy Rodríguez to open Venezuela’s oil industry to foreign operators and revive crude production. Venezuela’s government blamed lingering US sanctions for worsening strains on the power grid, which it says has restric...
Diplomatic efforts continuing despite fighting in and around contested strait of Hormuz in recent days Middle East crisis – live updates The US secretary of state, Marco Rubio, has said that Washington is expecting a response from Iran on Friday to its proposals for an interim deal to end the conflict in the Middle East, as Iran accused the US of breaching the increasingly fragile ceasefire announ...
Diplomatic efforts continuing despite fighting in and around contested strait of Hormuz in recent days Middle East crisis – live updates The US secretary of state, Marco Rubio, has said that Washington is expecting a response from Iran on Friday to its proposals for an interim deal to end the conflict in the Middle East, as Iran accused the US of breaching the increasingly fragile ceasefire announced last month. In recent days there have been the biggest flare-ups in fighting in and around the contested strait of Hormuz since the informal truce began. The rise in violence followed Donald Trump’s announcement – then rapid pause – of a new naval mission aimed at opening the strategic waterway. Continue reading...
J Studios Chip and AI-related stocks were largely in the green on Friday after the U.S. said it expects a response from Iran today on a proposal to end the war despite the exchange of strikes. The tech-focused Nasdaq Composite ( COMP:IND ) rose around 1.4%. At the same time, the benchmark S&P 500 ( SP500 ) climbed about 0.8%. The blue-chip Dow ( DJI ) was also in the green. Secretary of State Marc...
J Studios Chip and AI-related stocks were largely in the green on Friday after the U.S. said it expects a response from Iran today on a proposal to end the war despite the exchange of strikes. The tech-focused Nasdaq Composite ( COMP:IND ) rose around 1.4%. At the same time, the benchmark S&P 500 ( SP500 ) climbed about 0.8%. The blue-chip Dow ( DJI ) was also in the green. Secretary of State Marco Rubio said he expects a response from Iran today on a proposal to end the war, adding that he hopes "it’s a serious offer," CNN reported . As per U.S. President Donald Trump, a ceasefire is still in effect after U.S. forces said they targeted Iranian military facilities responsible for attacking its warships in the Strait of Hormuz. Shares of AI chipmaker Nvidia ( NVDA ) jumped about 3%, while Advanced Micro Devices ( AMD ) surged nearly 9%. AMD's quarterly results mid week had been praised by analysts and investors as the stock soared 20% on Wednesday. The company also announced a tentative agreement with Rackspace Technology ( RXT ) yesterday for enterprise AI cloud. AMD's stock saw a dip yesterday but is back among gains today. Year-to-date, AMD's stock has surged nearly 106%, while much bigger rival Nvidia is up about 15%. Broadcom ( AVGO ) climbed about 3% on Friday after having declined around 3% yesterday following a report that its chip deal with OpenAI ( OPENAI ) has run into financing issues. Meanwhile, Qualcomm ( QCOM ) soared about 11%. On Thursday, it was reported that the Trump Administration is expected to extend invitations to top executives from several companies, including Apple ( AAPL ), Nvidia ( NVDA ) and Qualcomm, for his upcoming visit to China next week. Qualcomm's stock has been surging since Tuesday. Year-to-date, Qualcomm's stock has jumped about 31%. Several other AI and networking-related stocks were mixed on Friday. Cisco ( CSCO ) soared about 4%, while Corning ( GLW ) jumped nearly 3%. Ciena ( CIEN ) rose around 2%. Meanwhile, Applied Optoel...
J Studios Chip and AI-related stocks were largely in the green on Friday after the U.S. said it expects a response from Iran today on a proposal to end the war despite the exchange of strikes. The tech-focused Nasdaq Composite ( COMP:IND ) rose around 1.4%. At the same time, the benchmark S&P 500 ( SP500 ) climbed about 0.8%. The blue-chip Dow ( DJI ) was also in the green. Secretary of State Marc...
J Studios Chip and AI-related stocks were largely in the green on Friday after the U.S. said it expects a response from Iran today on a proposal to end the war despite the exchange of strikes. The tech-focused Nasdaq Composite ( COMP:IND ) rose around 1.4%. At the same time, the benchmark S&P 500 ( SP500 ) climbed about 0.8%. The blue-chip Dow ( DJI ) was also in the green. Secretary of State Marco Rubio said he expects a response from Iran today on a proposal to end the war, adding that he hopes "it’s a serious offer," CNN reported . As per U.S. President Donald Trump, a ceasefire is still in effect after U.S. forces said they targeted Iranian military facilities responsible for attacking its warships in the Strait of Hormuz. Shares of AI chipmaker Nvidia ( NVDA ) jumped about 3%, while Advanced Micro Devices ( AMD ) surged nearly 9%. AMD's quarterly results mid week had been praised by analysts and investors as the stock soared 20% on Wednesday. The company also announced a tentative agreement with Rackspace Technology ( RXT ) yesterday for enterprise AI cloud. AMD's stock saw a dip yesterday but is back among gains today. Year-to-date, AMD's stock has surged nearly 106%, while much bigger rival Nvidia is up about 15%. Broadcom ( AVGO ) climbed about 3% on Friday after having declined around 3% yesterday following a report that its chip deal with OpenAI ( OPENAI ) has run into financing issues. Meanwhile, Qualcomm ( QCOM ) soared about 11%. On Thursday, it was reported that the Trump Administration is expected to extend invitations to top executives from several companies, including Apple ( AAPL ), Nvidia ( NVDA ) and Qualcomm, for his upcoming visit to China next week. Qualcomm's stock has been surging since Tuesday. Year-to-date, Qualcomm's stock has jumped about 31%. Several other AI and networking-related stocks were mixed on Friday. Cisco ( CSCO ) soared about 4%, while Corning ( GLW ) jumped nearly 3%. Ciena ( CIEN ) rose around 2%. Meanwhile, Applied Optoel...
The successful initial public offering of Compass Gas e Energia SA , the first in Brazil in nearly five years, means the country’s equity capital markets have now reopened even as global volatility keeps a cap on the pace of new deals, according to Banco Bradesco BBI . With foreigners powering what has been a strong year for the local equity market, appetite for more deals is returning, George Cos...
The successful initial public offering of Compass Gas e Energia SA , the first in Brazil in nearly five years, means the country’s equity capital markets have now reopened even as global volatility keeps a cap on the pace of new deals, according to Banco Bradesco BBI . With foreigners powering what has been a strong year for the local equity market, appetite for more deals is returning, George Costa e Silva , head of equity capital markets at the bank, said in an interview. Read More: Compass Breaks Brazil IPO Drought With $650 Million Offer Costa e Silva, whose firm was one of the joint coordinators on the Compass IPO, pointed to the return of specialized infrastructure funds that had been largely dormant since the privatization of Sabesp in 2024. However, he said investors remain highly sensitive to pricing, seeking enough “upside risk” to justify entering the market during volatile periods. “The market is open,” said André Moor , head of investment banking at Bradesco BBI. This shift in sentiment is supported by a pair of US listings earlier this year from Brazilian fintechs PicPay and AGI Inc. — known as Agibank, which paved the way for domestic firms to return to the primary market. Read More: Fintech Rivals Put an End to Brazil IPO Hiatus in Bumpy Comeback Moor said that for the window to fully swing open, it needs a de-escalation of global conflicts and more clarity on how Brazil’s presidential elections later this year will pan out, both of which have weighed on sentiment longer than many analysts had anticipated. Once the political landscape is defined, he expects a surge in deals, particularly from the financials, utilities and energy sectors. Evidence of the building momentum was on display at the 14th Unlisted Conference the bank held in New York this week. The event, which was expanded this year to accommodate rising demand, hosted 12 unlisted companies and 45 investors for more than 100 one-on-one meetings — a significant jump from last year, when the ...
Yahoo Inc. raised $1.6 billion from a loan and bond deal to refinance debt tied to its acquisition by Apollo Global Management after offering investors one of the highest-yielding deals of the year. The online media company wrapped up a $700 million term loan B at an interest rate of 6.5 percentage points over the US benchmark, priced at 97 cents on the dollar, according to a person with direct kn...
Yahoo Inc. raised $1.6 billion from a loan and bond deal to refinance debt tied to its acquisition by Apollo Global Management after offering investors one of the highest-yielding deals of the year. The online media company wrapped up a $700 million term loan B at an interest rate of 6.5 percentage points over the US benchmark, priced at 97 cents on the dollar, according to a person with direct knowledge of the matter. It also sold $900 million of junk bonds maturing in 2031 at a yield of 11%. These are juicy returns compared to other risky corporate debt sold this year. US leveraged loans on average have priced this year at about 3 percentage points above benchmark, according to data compiled by Bloomberg. Meanwhile, the average yield on existing B rated bonds have hovered around 7.2%. The Yahoo offering will repay loans raised in 2021 to help fund Apollo’s $5 billion buyout of the business from Verizon Communications Inc. that were due next year. The deal comes at a higher cost, with the original debt priced at 5.5 percentage points over the benchmark and 98.5 cents on the dollar. Weighing on the iconic internet firm’s credit profile are the ongoing shifts in technology and consumer behavior driven by artificial intelligence, which “will lead significant changes in the digital media landscape”, Moody’s Ratings said in a May 5 note to clients. Yahoo also faces elevated dependence on desktop traffic and fierce competition from larger players in search advertising and email services, Moody’s added. Yahoo shifted the funding mix during syndication, moving $200 million to bonds from loans, as part of its efforts to wrap up the deal. The Yahoo transaction was part of a flurry of high-yield debt offerings this week as firms rushed to capitalize on investor optimism that the US and Iran will reach an agreement to end the conflict in the Middle East. Companies raising debt in the past few days included Alaska Air Group Inc. , Venetian Resort Las Vegas and oil pipeline oper...
David Attenborough has spent more than seven decades bringing the natural world into our living rooms, becoming one of the first truly recognisable faces on television. From his seminal 1950s series Zoo Quest to the groundbreaking Life on Earth documentaries of the 80s and 90s, and more recently his hard hitting explorations of the climate crisis, including Ocean , Attenborough has left an indelib...
David Attenborough has spent more than seven decades bringing the natural world into our living rooms, becoming one of the first truly recognisable faces on television. From his seminal 1950s series Zoo Quest to the groundbreaking Life on Earth documentaries of the 80s and 90s, and more recently his hard hitting explorations of the climate crisis, including Ocean , Attenborough has left an indelible mark on film and TV Happy centenary, David! Attenborough’s 100 most spectacular TV moments ‘The greatest ambassador for life on Earth’: Tributes paid to David Attenborough on his 100th birthday ‘A true pinch-me moment’: memories of David Attenborough as he turns 100 Continue reading...
Justin Sullivan/Getty Images News SpaceX ( SPACE ) plans an initial investment of $55B for the ambitious Terafab project, which, if it comes to fruition, should prove beneficial for Intel ( INTC ) as well as several semiconductor manufacturing equipment vendors, such as ASML ( ASML ), KLA ( KLAC ), and Applied Materials ( AMAT ), according to Wedbush. A government filing this week included the ini...
Justin Sullivan/Getty Images News SpaceX ( SPACE ) plans an initial investment of $55B for the ambitious Terafab project, which, if it comes to fruition, should prove beneficial for Intel ( INTC ) as well as several semiconductor manufacturing equipment vendors, such as ASML ( ASML ), KLA ( KLAC ), and Applied Materials ( AMAT ), according to Wedbush. A government filing this week included the initial $55B investment for the proposed Texas project. If additional phases of the semiconductor production facility are completed, the total cost could be around $119B, the documents revealed. "If this project proves out, it would seemingly be a significant win for Intel given plans to use Intel's 14A process (though the exact relationship between Intel and Tesla/SpaceX remains a bit of a mystery)," Wedbush analysts noted in a Friday investor report. "In addition, a large additional fab build would have significant positive implications for a number of semicap vendors." "Having said this, we believe building/owning a fab to support internal requirements is necessarily an expensive proposition that has become increasingly difficult to justify (as illustrated by the explosion of fabless semiconductor companies over the past 30 years), and in particular we see a proposed fab using a process that's not yet finalized to build products that in many cases don't yet exist as a risky choice," Wedbush added. More on Intel, SpaceX, and Tesla Intel: Get Out Before The Hype Ends (Rating Downgrade) Sell Tesla Because It Is An Unlikely Comeback Story Tesla: Musk's Vision Is Finally Becoming Reality Cathie Wood talks 'voracious' SpaceX appetite, Tesla's edge to drive robotaxi win Musk offered Tesla board seat to OpenAI's Altman, Shivon Zilis says