CoreWeave Stock Down 56% From its Peak — HSBC Sees More Pain Ahead
HSBC kept CoreWeave at Reduce with a $39 target, citing neocloud disadvantages, weaker demand, low estimates and debt risks.
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Ahead of Meta's Q3 earnings, Patrick Moorhead praises its Nvidia-powered Prometheus cluster while analysts eyeball Muse AI monetization.
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HSBC kept CoreWeave at Reduce with a $39 target, citing neocloud disadvantages, weaker demand, low estimates and debt risks.
Airbnb stock has surged 10% in the last two weeks, outperforming the S&P 500 amid tech sector weakness. The article highlights three reasons for optimism: the company benefits from higher interest rates through interest income on customer funds, it has competitive advantages against AI-driven booking disruption compared to rivals Expedia and Booking, and the travel sector continues to show strong growth driven by wealth, experiences-focused spending, and social media influence.
Meta Platforms is set to report Q3 earnings on Oct. 21, marking the start of earnings season for the 'Magnificent Seven' tech companies. Investors are closely watching to see if massive AI infrastructure spending translates into revenue growth. Meta's capex-to-revenue ratio has reached 35% and could climb further, raising concerns about whether AI investments will justify the spending levels. Positive results from Meta could boost AI stocks and provide direction for the broader market.
SpaceX stock has rebounded 35% from its August lows following strong Q2 earnings with 92% revenue growth and major business expansions in Starlink and AI. However, the analyst advises against buying at current valuations, citing a P/S ratio of 68 (vs. S&P 500 average of 3.8), lack of profitability, and an upcoming December lockup expiration that could pressure the stock.
The article compares two technology ETFs: XLK (State Street Technology Select Sector SPDR ETF) and SOXX (iShares Semiconductor ETF). XLK offers broader diversification with 75 holdings, lower fees (0.08% expense ratio), higher dividend yield, and lower volatility, making it more attractive for conservative investors. SOXX provides concentrated semiconductor exposure with 30 holdings and delivered superior 1-year returns of 79.5% but carries higher volatility and fees (0.33% expense ratio). The author recommends XLK for its diversification and stability despite SOXX's stronger recent performance.
Amazon released TorchNeuron, an open-source software tool that allows PyTorch code to run on AWS Trainium chips with minimal changes, challenging Nvidia's market dominance. Amazon stock surged 5% on the announcement. Meanwhile, Karooooo's shares fell 8% despite strong subscriber growth due to lower-than-expected earnings and unchanged guidance. Netflix and SpaceX are set to report earnings, with Netflix focusing on ad revenue growth and SpaceX on AI spending efficiency. MercadoLibre continues expanding in Latin America with heavy investments in shipping and payments.