CoreWeave's Acquisition of Core Scientific Boosts AI Capabilities and Synergies
Jurassic World Rebirth brings in $300 million globally, boosting Comcast’s revenue. CoreWeave acquires another AI Data Center company, Oracle cuts cloud prices for the federal government. Consider Samsara and Howmet Aerospace if the market pulls back. Netflix reports over half of its 300 million subscribers watch Japanese anime, showcasing global brand power. CoreWeave, an AI infrastructure company, plans to acquire Core Scientific for $9 billion in an all-stock deal, aiming to strengthen its AI capabilities. Core Scientific shares dropped 20% today, signaling uncertainty in the market. CoreWeave’s vertical integration strategy could boost its power over the platform, with 1.3 gigawatts of gross power and potential for expansion.
Despite market skepticism, CoreWeave’s acquisition of Core Scientific could provide synergies and cost savings. Oracle recently slashed cloud service prices for the US government by up to 75%, benefiting both parties. This move reflects a long-term strategy of driving down prices to attract customers, similar to Amazon’s approach. Federal agencies, aiming to modernize on tight budgets, stand to gain from these reduced rates. Oracle is offering discounts to lock in multi-year contracts, providing stability for revenue predictions. The deal with the GSA gives Oracle a foot in the door for government-wide solutions. The company is projecting significant growth in cloud revenue and IAAS. Stocks are near all-time highs, with Samsara as a promising watch list candidate.
Samsara, ticker IOT, operates a Connected Operations Cloud platform connecting devices for companies. Despite being cash flow positive, stock-based compensation eats into profitability. The company shows strong growth with revenue and customer base expansion. Co-founders own a majority of the voting power, displaying a strong long-term commitment to the company.
Howmet, symbol HWM, specializes in high precision metalworking for aerospace, transportation, and energy markets. The company provides key components for aero engines, commercial trucking, and auto industries. Formerly part of Alcoa, Howmet has a history of expertise in precision airfoils and forgings. The stock recommended by the Rule Breakers team has doubled in the past year and is up almost 50% since the recommendation. With strong competitive advantages in patents, manufacturing, and core clients, it has opportunities in the energy space. However, some experts suggest waiting for a market breather before investing in this $73 billion aerospace market player, Howmet. Patience often pays off in investing, as seen in high-quality companies like Samsara and Howmet that are being monitored for potential portfolio additions. For feedback or questions, email [email protected]. Advertisements are sponsored content for informational purposes only. Suzanne Frey of Alphabet is a member of The Motley Fool’s board, and Andy Cross and Jason Moser have positions in various tech and media companies. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Netflix, Salesforce, and more.
Read more at Barchart: Dinosaurs Roar for Comcast; CoreWeave Goes Shopping