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Luke Kawa2/24/25

Rivian cut to “underperform” by Bank of America

Bank of America now thinks electric vehicle company Rivian will lag its automaker peers, with analysts downgrading the stock to underperform from neutral and lowering their price target to $10 from $13.

Though the stock is taking a bath this morning amid the downgrade, that price is still about 15% below where the shares are currently trading. The average analyst’s price target for the shares is $14.64.

Analysts led by John Murphy cite “risks piling up” for the company, namely:

A weaker-than-expected 2025 outlook for the company;
A dim outlook for EVs generally;
More competition in the EV market, particularly in the sport and crossover utility space, which could limit sales of its upcoming R2; and
The potential for the Trump administration to try to claw back a loan closed during the twilight hours of the Biden administration.

Though Rivian posted its first quarterly gross profit last week, it’s still a cash-burning machine.

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Markets droop as AI credit fears grow and jobs report looms

The S&P 500, Nasdaq 100, and Russell 2000 all slumped on Monday.

Black Bear with Hand on Head

To AI-nfinity... and beyond!

Deutsche Bank highlights four roadblocks for tech CEOs’ obsession: Data centers in space

The good news: “There are clearly technical challenges to making this a viable endeavor but these seem to be engineering constraints as opposed to physics,” per Deutsche Bank.

CHINA-JIUQUAN-SATELLITE-LAUNCH (CN)

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Matt Phillips7h

Bitcoin-sensitive stocks hammered as crypto declines

Bitcoin-sensitive stocks tumbled Monday, enduring a much steeper drop than the keystone crypto asset itself, which was down nearly 4%, falling below $87,000, as of 12:20 p.m. ET.

Goldman Sachs’ themed basket of bitcoin-sensitive equities was down more than 8%. (It consists of companies tied to bitcoin, either through mining, digital payments, crypto investment, or blockchain technology.) It was one of the worst performers among Goldman’s thematically curated baskets of shares on Monday.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

GameStop rallies on bullish options activity as Michael Burry teases post

And let’s not sell the artist formerly known as “Best Buy Rilie” short, either.

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Nvidia’s favorite stocks are getting shellacked as AI credit risk spreads

Nvidia’s “House of GPUs” is looking a little wobbly.

Shares of Applied Digital, CoreWeave, and Nebius — three of the four biggest equity positions held by the chip designer as of September 30 — are getting crushed on Monday.

Nvidia owned about $3.6 billion worth of these data center and neocloud stocks (with the overwhelming majority in CoreWeave) per its most recent 13F filing.

The AI credit risk that’s been most talked about in reference to Oracle’s widening credit default swaps spreads is also present in some of these firms, as well.

An Applied Digital bond due in 2030 is trading below $96 for the first time this month. That issuance was made to support data centers where CoreWeave will be the main tenant.

CoreWeave, which earlier this year received warrants enabling it to purchase a large chunk of Applied Digital shares as part of a data center leasing deal, sank last week after announcing a $2 billion convertible note offering that was later upsized.

Of course, it’s not just Nvidia-owned stocks, but the entire data center ecosystem that’s under pressure on Monday. Cipher Mining and IREN are also getting walloped — with Monday’s crypto tumble also likely weighing on these two bitcoin miners turned data center companies.

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