00:02 Speaker A
All right, now it’s time for some of today’s trending tickers. Yahoo Finance’s Brooke DiPalma joins me here at the desk
00:07 Speaker A
instead of across the desk from me out in the newsroom. Uh, let’s start with, uh, CoreWeave. Uh, that stock is rising today. Loop Capital out initiating coverage on the stock with a buy rating.
00:22 Brooke DiPalma
Yeah, well, happy to be here at the physical desk inside the studio. Loop Capital analysts saying today that there remains a material under appreciation for how committed the hyperscalers and major AI labs and frontier model builders remain to pushing the innovation envelope forward. So, of course, hyperscalers are the group of AI providers like Amazon, Microsoft, Google.
00:54 Brooke DiPalma
Worth noting here that CoreWeave’s biggest customer is Microsoft. In the latest quarter, it made up about 70% of CoreWeave’s revenue and the analyst sees CoreWeave shares rising to about $165. Right now we’re at about $125. And but it’s important to note here that this company was one of the early IPOs this year. If you see the run-up that we’ve seen over year to date, up more than 200% after it really got that momentum this summer as this AI tech rally really let off.
01:21 Brooke DiPalma
But there are some concerns on the street and analysts are concerned about what exactly happens uh, once these companies like Microsoft and Meta and so on really build their own data centers here and also uh, that mounting debt that they have, of course, with these higher interest rate environment.
01:40 Speaker A
Yeah, it was a, I don’t want to call it a controversial IPO, but there were a lot of people with a lot of questions about it. Stock’s about 20% off of its high that it hit back in June. Um, but yeah, I mean, when I think you take a step back and you look at the 2025 class of IPOs, uh, Core Weve is certainly going to be a standout among there. All right.
02:04 Speaker A
Let’s turn our attention uh now to nuclear stocks. This has been another interesting area of the market. Those stocks, and really the whole sector getting a lift as the US and the UK yesterday announcing plans to further increase cooperation and investments in the nuclear space, Brooke.
02:28 Brooke DiPalma
Yeah, really extending those rallies that we saw on Thursday based upon the announcement that President Trump teamed up with UK Prime Minister to announce what they’re calling the technology prosperity deal. And really it’s an agreement between the two nations to share research and findings around artificial intelligence, nuclear energy and quantum computing across healthcare to lower energy costs and really support national security. The release also says on the White House’s website. Uh, in addition to that, these two companies, if you take a look at the extension that they’ve had of these rallies, today up more than 20% for NuScale Power Corporation, Oklo up more than 25%.
03:22 Brooke DiPalma
And I think this really just speaks to the potential need of the space, the need to have around the AI arms race. We ultimately need in the back end to have the nuclear energy to support this. And we’re hearing calls in the street like from Bank of America calling nuclear energy a $10 trillion potential market. And they said that there’s a need for global global nuclear capacity that’ll have to triple by 2050. And so really the overall, just this need to have for nuclear energy in order to meet this AI arms race need.
04:00 Speaker A
Yeah. Yeah. Another AI derivative trade. Anytime, anytime you can get one, uh, Wall Street is going to go find one. I guess this one.
04:14 Speaker A
All right, lastly, let’s talk a little bit about Fiverr, that stock getting a lift with BTIG upgrading the stock to buy from neutral.
04:25 Brooke DiPalma
Yeah, this is a pretty interesting company. So it’s a marketplace for freelancers. So I feel like this was really big when we were talking about the gig economy about five, six years ago now. And this company now sitting a bit under, you know, under pressure year to date, down more than 14%, now sitting at $27 after this pop that we did get today.
04:47 Brooke DiPalma
But largely this is because of this upgrade that they got from BTIG, upgrading like you said, online marketplace from buy uh from buy to buy from, right? I had my notes on the side. But really, uh, in addition to that, they have this restructuring at the company. They’re set to cut the headcount by 30%. Analyst speculating that could be about $30 million in cost savings.
05:14 Brooke DiPalma
And the CEO was quoted saying that the transformation requires a painful reset, and that’s really what we’re seeing here now. Also perhaps a boost because of the interest rate cut?
05:25 Speaker A
Well, there are two things on this. One, because we were just talking about CoreWeave with this year’s IPO class. Uh, Fiverr was one of the big IPO stars back in 2021. Yes. Okay, so four years ago. But it’s like, but it was very hot in that 18, 19 period running into it. It was like, oh, okay, 2021, any company can go public and they were among the companies that did.
05:39 Speaker A
Um but we were also discussing earlier, weakening labor market, good for freelancer marketplaces. So it’s almost like in in it’s an inverse play on the overall economy. In addition to, management is just out here saying, hey, we’re going to cut our costs way down, which is something that anal or something that investors are, you know, generally usually supportive of when the stock’s down 80% from its all-time high.
06:10 Brooke DiPalma
And then if you take a look on the flip side, also in the call, the amount of times AI was named just because of people really not needing maybe those freelancers who did that those small day-to-day tasks. Now AI is being used for that. So they sort of cut that out of their business. But they did say that people need to know how to use AI and so they’re looking for more perhaps technologically advanced freelancers to take on some of those roles. So really a bit of a twofold here.
06:40 Speaker A
All right, Brooke, great stuff. Have a great weekend.