CoreWeave results drive broad tech rally
US tech stocks surged Wednesday following stronger-than-expected CoreWeave earnings, as the AI trade recovered after last week’s selloff. Despite the company’s massive borrowing, investors were encouraged by CoreWeave beating revenue expectations and raising its forecast, as traders parsed the key Anthropic vendor’s results for clues ahead of the AI firm’s planned IPO next week. CoreWeave shares, though, are down 20% so far this year, and the company is not throwing enough cash off its business to cover its roughly $41 billion of net debt, amid jitters over the sustainability of the AI buildout. Still, “a healthier-looking CoreWeave today at least provides some reassurance to the broader AI market and especially to Anthropic,” a Bloomberg columnist wrote.
US tech stocks surged Wednesday following stronger-than-expected CoreWeave earnings, as the AI trade recovered after last week’s selloff. Despite the company’s massive borrowing, investors were encouraged by CoreWeave beating revenue expectations and raising its forecast, as traders parsed the key Anthropic vendor’s results for clues ahead of the AI firm’s planned IPO next week. CoreWeave shares, though, are down 20% so far this year, and the company is not throwing enough cash off its business to cover its roughly $41 billion of net debt, amid jitters over the sustainability of the AI buildout.
Still, “a healthier-looking CoreWeave today at least provides some reassurance to the broader AI market and especially to Anthropic,” a Bloomberg columnist wrote.