🤑 CoreWeave Surges 19%

Good afternoon! Tomorrow marks 15 years since programmer Laszlo Hanyecz paid 10,000 bitcoin for two Papa John’s pizzas - the first real-world crypto transaction and the origin of “Bitcoin Pizza Day.” At the time, those coins were worth about $40. Today? Over $1 billion.

Hanyecz stands by the decision, calling it “free pizza” in exchange for his hobby work on an open-source project. The crypto community is celebrating with pizza giveaways and bitcoin prizes. It may be a gut-punch to your wallet, but to crypto fans, it’s a feast of innovation.

MARKETS

• Markets buckled midweek as rising bond yields rattled Wall Street. A poorly received 20-year Treasury auction sent yields surging, with the 10-year climbing back above 4.5% and the 30-year breaching 5%, fueling fears that ballooning deficits from the latest tax bill could undermine investor confidence.

• Stocks took the hit. The Dow sank nearly 800 points, while the S&P 500 and Nasdaq logged their worst day in a month. With both stocks and bonds in retreat, investors are signaling fresh doubts about the US economy’s footing and Washington’s fiscal plans aren’t helping.

STOCKS
Winners & Losers

What’s up 📈

• Canada Goose surged 19.62% after posting strong fiscal Q4 results, even though it withheld guidance for the next year due to macro uncertainty. ($GOOS)

• WeRide jumped 21.42% after announcing a $100 million stock buyback. ($WRD)

• Xpeng climbed 13% after reporting a smaller-than-expected Q1 loss and forecasting more than 200% year-over-year delivery growth this quarter. ($XPEV)

• Alphabet rose 2.79% after unveiling new AI search features at its developer conference. ($GOOGL)

What’s down 📉

• Wolfspeed plummeted 59.11% after concerns about a potential bankruptcy dragged down shares. ($WOLF)

• Carter’s sank 12.62% after announcing it would slash its dividend due to rising tariff-related costs. ($CRI)

• Modine Manufacturing dropped 11.66% despite beating Q4 earnings and revenue estimates. ($MOD)

• Palo Alto Networks fell 6.80% as investors focused on gross margin disappointment despite a beat on earnings. ($PANW)

• Target lost 5.21% after missing sales expectations and cutting its full-year outlook, citing weak consumer sentiment and tariff risks. ($TGT)

• UnitedHealth slid 5.78% following an HSBC downgrade and fresh scrutiny over alleged cost-cutting practices in nursing home transfers. ($UNH)

• Take-Two Interactive dropped 4.52% after announcing a $1 billion stock offering. ($TTWO)

• Southwest Airlines declined 2.28% after the FAA announced limitations on flights in and out of Newark Airport. ($LUV)

• American Airlines fell 3.52% and United Airlines sank 3.93% for the same reason. ($AAL, $UAL)

STOCK
CoreWeave Surges 19% After $2 Billion Debt Offering And Citi Bank Upgrade

CoreWeave’s rally is moving faster than Wall Street’s models can catch up. Citi more than doubled its 12-month price target to $94 on Wednesday but CoreWeave immediately rendered that old news, jumping 19% to close at $107.39. The Nvidia-backed AI cloud company has now soared over 160% since its March IPO, fueled by a wave of bullish headlines: a $4B deal with OpenAI, a $2B debt raise that was 5x oversubscribed, and a blowout first earnings report showing 420% YoY revenue growth.

What CoreWeave Actually Does

CoreWeave rents out access to 250,000+ Nvidia GPUs spread across 33 data centers, giving companies the compute power they need to train and deploy AI models—without the upfront costs of building it all themselves. Microsoft, OpenAI, and Nvidia are among its top clients, relying on CoreWeave’s infrastructure when internal capacity runs short. Its edge? Speed to deployment, custom AI infrastructure, and close ties to the hottest names in the industry.

Big Bets, Bigger Risks

The company is planning to spend up to $23B in capex this year and says it already has $29B worth of contracts locked in to support that. But the spending comes at a cost: CoreWeave has racked up $8B in debt and burned nearly $1B in interest payments in 2024 alone. Revenue is also highly concentrated—62% came from Microsoft last year—and analysts warn that if Microsoft scales its own data centers, CoreWeave could be left in the dust.


Despite the excitement, skeptics remain. D.A. Davidson compared CoreWeave to WeWork and called it “not worth scaling.” Others point to a low float (13%) and high short interest (40% of the float), suggesting the price action may be a bit frothy. Citi, even while boosting its target, maintained a neutral rating and said it wants to see “more progress on profitability and customer diversification” before getting too excited.

AI Darling for Now: CoreWeave’s story has all the ingredients of a market favorite: booming demand, marquee partners, and a first-mover advantage in AI cloud infrastructure. But between high leverage, concentrated risk, and a tech cycle that moves at warp speed, staying on top won’t be easy. For now, though, it’s the latest breakout in the AI arms race and retail traders are piling in.

NEWS
Market Movements

• 📈 Yields spike on GOP spending fears: Treasury yields surged past 5% as markets react to Trump’s massive tax-and-spending bill, Moody’s downgrade, and rising debt concerns. Traders fear higher inflation, tighter borrowing, and more volatility if the bill passes—or doesn’t.

• 🚀 L3Harris climbs on missile defense win: L3Harris is gaining after Sen. Jim Banks confirmed the company will help build the $175B “Golden Dome” missile defense system announced by Trump. The system is set to be operational by 2029. Palantir and SpaceX are also seen as potential beneficiaries. ($LHX)

• 💸 Tesla’s Cybertruck trade-ins reveal brutal value drop: Cybertruck owners are reporting 37–38% depreciation in just a year—far worse than typical pickup trucks. Tesla is sitting on excess inventory and told factory workers to take Memorial Day week off. The company only recently began accepting trade-ins, possibly due to the steep value loss. ($TSLA)

• 📉 UnitedHealth drops on annual Medicare audits: UnitedHealth fell after regulators announced yearly audits for all Medicare Advantage plans. The DOJ is also investigating the company over billing practices aimed at increasing government payments. Shares slid further after hours. ($UNH)

• 🤖 Google rallies as AI Mode wins over analysts: Google jumped 5% after unveiling AI Mode and Gemini upgrades at its developer conference. Analysts say it marks a turning point in Google's AI race against OpenAI. JPMorgan and others praised the speed and scale of its integration. ($GOOGL)

• 🛍️ Target sinks after cutting full-year forecast: Target shares dropped over 5% after Q1 earnings missed and the company slashed its guidance. Executives cited weak discretionary spending, DEI backlash, and tariff-driven cost concerns. It plans to hike prices and shift more sourcing out of China. ($TGT)

• 👟 Nike rejoins Amazon: Nike will resume selling directly on Amazon for the first time since 2019, aiming to expand digital reach and crack down on counterfeits. Amazon says more Nike products are coming soon. ($NKE)

• 🤖 OpenAI buys Jony Ive’s AI hardware startup: OpenAI is acquiring io for $6.4B in stock, bringing Ive’s design team in-house to build AI-powered devices. It’s OpenAI’s biggest acquisition yet.

• ❄️ Snowflake beats and raises forecast: Snowflake shares popped after topping Q1 estimates and raising its full-year revenue outlook, boosted by enterprise AI demand and cloud migration. ($SNOW)

IPO
Hinge Health And MNTN To Test Strength of IPO Market

After a brutal freeze in tech IPOs, the window is officially cracking back open. Digital physical therapy company Hinge Health ($HNGE) and connected TV adtech firm MNTN ($MNTN) both priced their IPOs at the top of their ranges Wednesday, raising a combined $624 million. Both deals were multiple times oversubscribed, showing investor appetite is creeping back—at least for companies with strong narratives and reasonable valuations.

Hinge Health Gets Its Flex On

Founded in 2014, Hinge Health uses AI-powered motion tracking to guide patients through at-home physical therapy. The company raised $437 million in its debut and hit the market at a ~$2.6 billion valuation less than half the $6.2 billion it commanded in its 2021 private round. Still, the business is trending up: Q1 revenue jumped 50% YoY to $124 million, and net income swung to a $17 million profit. With 2,250+ clients (who collectively offer the platform to 20 million people), Hinge hopes its re-priced story lands better in a post-COVID digital health landscape.

MNTN Bets on Streaming Ads

MNTN isn’t just Ryan Reynolds' ad playground—it’s a connected TV advertising platform that helps brands run performance marketing campaigns across streaming services like Hulu and Peacock. Think of it as Google Ads, but for your TV. It raised $187 million at a valuation up to $1.6 billion fully diluted. Q1 revenue rose 47% to $64.5 million, though losses also widened to $21 million. Still, investors are intrigued by its ability to help small- and mid-sized businesses tap into the streaming ad boom with precision-targeted campaigns and real-time performance data.

Still a Tricky Market: While both IPOs show promise, neither company is immune to the ghosts of IPOs past. Digital health has been a bloodbath since Teladoc and SmileDirect flopped, and adtech firms not named Trade Desk have mostly struggled in public markets. Still, with CoreWeave’s IPO up over 150% and volatility dipping, Hinge and MNTN may be early proof that if the story and pricing are right, the IPO market is ready to re-engage.

Calendar
On The Horizon

Tomorrow

Thursday kicks things up a notch with a handful of key economic reads. Markets will get fresh snapshots of the labor market, manufacturing activity, and home sales—all useful tea leaves for where the economy might be headed.

Earnings-wise, there’s a solid lineup of names reporting. Intuit, Analog Devices, BJ’s Wholesale, TD Bank, Deckers, and Advance Auto Parts are all set to drop their latest numbers, giving investors a mixed bag of insights from finance to fleece-lined boots.

NEWS
The Daily Rundown

• 🧾 Klarna users are buying now, but not paying later: Klarna’s consumer credit losses jumped to $136 million in Q1, up 17% from the year before. While revenue rose and the customer base exceeded 100 million, more BNPL users are relying on the service for essentials like groceries and struggling to repay. Klarna maintains that overall delinquency remains low.

• 🇬🇧 UK suspends trade talks with Israel over Gaza: The UK halted negotiations on a new free trade deal with Israel in response to its expanded military operations and aid restrictions in Gaza. Alongside Canada and France, the UK warned of further actions unless Israel changes course. The EU is also reviewing its existing deal amid worsening conditions.

• 👖 Levi’s sells Dockers to Authentic Brands: Levi Strauss is offloading its Dockers brand in a $311 million deal with Authentic Brands, with potential for more based on performance. The sale allows Levi’s to focus on core products and expand in women’s fashion and direct-to-consumer sales. Authentic plans to expand Dockers internationally.

• 🔋 CATL’s Hong Kong IPO raises $4.6B: Chinese battery maker CATL raised $4.6 billion in its Hong Kong debut, making it the year’s largest IPO globally. Shares surged 16% amid strong demand despite U.S.-China tensions. The funds will go toward building a European battery plant and expanding global supply.

• 🚗 Musk commits to leading Tesla through 2030: Elon Musk says he’ll stay on as Tesla CEO for another five years, stepping down only “if I’m dead.” He also pledged to reduce political donations and refocus on the company’s core mission. Investors welcomed the clarity ahead of the upcoming robotaxi rollout.

• 🎵 Apple TV+ to debut new Peanuts musical: A new 40-minute Peanuts musical titled “Snoopy Presents: A Summer Musical” will hit Apple TV+ on July 18. It’s the first Peanuts musical in 35 years and features music by Jeff Morrow and Ben Folds. The story centers on summer camp adventures and aims to connect with a new generation of fans.

• 🔍 Google unveils AI-powered search option: Google announced a new “AI mode” that answers queries through chatbot-style responses rather than traditional search results. It marks a major shift in how the platform operates and is part of Google’s broader push to catch up with rivals in generative AI. CEO Sundar Pichai called it a complete rethinking of the search experience.

• 💉 FDA restricts Covid booster access: The FDA will no longer routinely approve annual Covid vaccines for most healthy adults under new Trump administration guidance. Shots will now be prioritized for high-risk groups like seniors and those with underlying conditions. Officials say the one-size-fits-all model is outdated and doesn't reflect global vaccine strategies.

• 🎮 Fortnite’s AI Darth Vader sparks union complaint: Fortnite launched an AI Darth Vader bot using James Earl Jones’s voice—fully licensed by his estate—but failed to notify the actors’ union as required. SAG-AFTRA says the move violated collective bargaining rules and filed a labor complaint. Players quickly used the bot to generate viral meme lines before Epic restricted its speech.

• 🏠 Home Depot won’t raise prices despite tariffs: Home Depot said it won’t increase prices in response to new U.S. tariffs, crediting its diversified supply chain. Some items may be removed if tariffs make them unprofitable. This contrasts with competitors like Walmart, which warned of price hikes tied to trade policies.

The key to a $1.3T opportunity

A new real estate trend called co-ownership is revolutionizing a $1.3T market. Leading it? Pacaso. Led by former Zillow execs, they already have $110M+ in gross profits with 41% growth last year. They even reserved the Nasdaq ticker PCSO. But the real opportunity’s now. Until 5/29, you can invest for just $2.80/share.

Invest in Pacaso today.

_{This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.}

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