CoreWeave (CRWV) faces selling pressure in Friday morning trading. The cloud computing provider, which owns many AI servers powered by Nvidia (NVDA) chips, fell by around 9% in after-hours trading.
CRWV stock faced selling pressure after the firm lost $0.89 in EPS (GAAP). Despite revenue growing by 110.2% to $1.57 billion, worries about its finances worsened. CoreWeave has depreciation and amortization that accounts for over half (52%) of its revenue. Interest expense is around one-quarter of its revenue, and stock-based compensation is 10% of revenue.
Flutter (FLUT), a sports gambling firm, might go down by around 5% or more. In Q4, non-GAAP was $1.74. Revenue was $4.74 billion (+25.1% Y/Y).
FLUT stock peaked at over $300 last summer and has been in a sustained downtrend since then.
Paramount Skydance (PSKY) outbid Netflix (NFLX) last night to win Warner Bros. Discovery (WBD). Before that, PSKY stock tended to rise whenever the firm inched closer to winning the bid. Still, short sellers held a 5% short interest, so once they cover the bet, PSKY's stock risk worsens.
Netflix might open up by at least 10% - 15% in the coming weeks. It gets paid a breakup fee of $2.8 billion for ending the original deal.
In the long-term Paramount faces pressure on its balance sheet. Fortunately, the Ellison Trust will provide $45.7 billion in equity. Banks like B of A (BAC), Citi (C), and Apollo (APO) will lend $57.5 billion.
NFLX stock is more attractive from here. It no longer needs to hurt its balance sheet by owning WBD.
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