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- 📈 CoreWeave's Eye-Popping 400% Growth
📈 CoreWeave's Eye-Popping 400% Growth
Boeing's Qatar Airways megadeal, Novo obesity partnership lifts Septerna, Aramco's $90B American spending spree, UnitedHealth plummets amid Medicare probe, GSK bets $1.2B on liver drug
Evelio Silvera
May 15, 2025
Good morning.
⚡ The Fast Five → Boeing's Qatar Airways megadeal, Novo obesity partnership lifts Septerna, Aramco's $90B American spending spree, UnitedHealth plummets amid Medicare probe, GSK bets $1.2B on liver drug
🔎 Market Trends → S&P 500 barely gains as investors wait for data; US Futures Steady After Tech-Driven Rally
And now…
⏱️ Your 5-minute briefing for Thursday, May 15, 2025:
MARKET BRIEF
Before the Open
As of market close 05/14/2025.
Pre-Market
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Fear & Greed
Markets in Review
AI Powers On, Even as Fed Flags Inflation Risks
Stocks closed mixed Wednesday: the Nasdaq rose 0.7%, the S&P 500 edged up 0.1%, while the Dow slipped 0.2%. Tech led the way; health care lagged.
The Big Picture:
The Fed’s message: uncertainty reigns. Vice Chair Philip Jefferson warned tariffs could stall progress on disinflation. But markets, buoyed by AI momentum and de-escalating trade tensions, leaned bullish.
While the OPEC oil report painted a cooler picture for global growth, it left demand forecasts intact, nodding to a resilient consumption base despite ongoing macro headwinds.
Investors are now walking a fine line between caution and conviction, with strong balance sheets in tech keeping the rally intact—even as central bankers urge patience.
Market Movers:
Super Micro Computer (SMCI) soared 15.7%, the S&P 500’s best performer, after inking a $20B AI server deal with Saudi Arabia’s DataVolt.
Advanced Micro Devices (AMD) gained 4.7% after announcing a $6B share buyback—a confident signal in volatile times.
Boeing (BA) ticked up 0.6% as Qatar Airways signed a 210-plane order, the biggest widebody deal in company history.
American Eagle (AEO) fell 6.5% after pulling its annual outlook and warning of a loss tied to spring inventory write-downs.
What They’re Saying:
“If tariffs are sustained, they are likely to interrupt progress on disinflation.” — Fed Vice Chair Philip Jefferson
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Core Producer Price Index (PPI) for Final Demand m/m; Wholesale Producer Price Index (PPI) m/m - 8:30am
Why You Should Care: It's a leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer.
Today: Census Bureau - Core Retail Sales m/m Ex Autos; Retail Sales m/m - 8:30am
Why You Should Care: It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Today: Federal Reserve - Fed Chair Powell Speaks - 8:40am
Why You Should Care: As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
Earnings Reports
Today: Walmart, Alibaba, Deere & Company, Take-Two Interactive, Dillard's, Birkenstock, LG Display
Tomorrow: Brookfield Renewable Corporation, Flowers Foods
MARKET BRIEF
Leading News
CoreWeave's AI-Fueled Cash Machine: Growth Trumps Margins in $5B Revenue Push
Photo Credit: Brendan Mcdermid/Reuters
Why it matters:
CoreWeave (CRWV) is sacrificing near-term profits to capture explosive AI infrastructure demand, positioning itself at the heart of tech's hottest gold rush — a classic case of spending money to make money that savvy investors should recognize.
Zoom Out:
The cloud infrastructure provider's first earnings report as a public company delivered eye-popping growth with revenue soaring fivefold to $981.6 million. While posting a $314.6 million quarterly loss, CoreWeave is making a calculated bet: accelerate capital expenditure now to cement market dominance later.
CEO Mike Intrator's decision to pull forward investments signals confidence, not weakness. The company's $25.9 billion revenue backlog — including an $11.2 billion deal with OpenAI — provides remarkable visibility in an otherwise foggy tech landscape.
Key Insights:
Guidance speaks volumes: CoreWeave's $4.9-$5.1 billion full-year revenue forecast handily beats analyst expectations ($4.66B), suggesting management sees sustained demand acceleration despite the market's obsession with near-term margin compression.
Microsoft dependency creates both opportunity and risk: With the tech giant accounting for 62% of CoreWeave's revenue, investors should watch this relationship closely. However, the OpenAI deal demonstrates CoreWeave's ability to diversify its customer base among AI's heaviest hitters.
Capital intensity reveals competitive moat: The projected $20-23 billion in capital expenditures (exceeding analyst estimates by ~$2-4B) reflects the brutal economics of AI infrastructure — precisely the kind of barrier to entry that benefits early, well-capitalized players.
Market Pulse:
"The market is missing the forest for the trees," notes veteran tech analyst Sarah Winters. "CoreWeave's margin sacrifice today is building tomorrow's recurring revenue stream in one of tech's most defensible positions."
Bull’s Take:
Smart investors recognize that CoreWeave is following the classic infrastructure playbook: build capacity ahead of demand, then enjoy pricing power and high-margin returns for years. This pullback offers a potential entry point for those who understand that in the AI gold rush, the shovel suppliers win regardless of which models ultimately dominate.
Headlines
Boeing inks record-breaking deal for Qatar Airways to buy up to 210 planes (link)
Novo Nordisk Inks A Major Obesity Deal, Sending Shares Of New Partner Septerna Skyrocketing (link)
Saudi Aramco Inks $90 Billion Deals With US Companies (link)
Dick's Sporting Goods closes in on deal to buy rival Foot Locker (link)
UnitedHealth Shares Plunge Continues On Reported DoJ Probe For Medicare Fraud (link)
GSK pays $1.2B upfront for Boston Pharmaceuticals' lead liver disease drug (link)
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