Expensive bets against CoreWeave are getting smashed as shares soar

CoreWeave is behaving like it’s a twice-levered version of a US retailer that sources from China and just got major tariff relief.

Shares of the recently IPO’d cloud computing company are going bananas today, up 15%, ahead of its inaugural earnings report as a publicly traded firm on Wednesday after the close.

Like SoundHound AI, this has the fingerprints of a short squeeze, with an extra dose of strong appetite for upside in the options market.

Exchange data shows 30% of CoreWeave’s float was sold short heading into the start of May, during which time it’s rallied more than 40%. The stock is also fairly expensive to borrow, with an annual rate of about 8.3%, per Interactive Brokers data. That’s the third-highest borrow rate among stocks with a market cap of at least $20 billion, per ChartExchange.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

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