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Luke Kawa

Top Core Scientific shareholders mulling “revolt” against CoreWeave deal: Report

The Financial Times is reporting that some of the “top shareholders” of Core Scientific are crying foul over the terms of its all-stock takeover by CoreWeave and are planning on voting against the deal.

“Multiple funds” told the FT they’d be more comfortable with the deal if there were a separate measure in the arrangement that put a floor under the ultimate value Core Scientific would receive in the event that CoreWeave’s shares fell a lot from here (that is, a collar agreement).

Under the terms of the agreement, Core Scientific shareholders will receive 0.1235 shares of CoreWeave upon the closing of the deal.

At the time the news broke, that put the acquisition price at about $9 billion. But shares of CoreWeave are down nearly 34% since that time, while the S&P 500 is slightly higher over this period.

The post-IPO lockup period for the lion’s share of CoreWeave holders expires in mid-August, shortly after the company reports its second-quarter results.

We detailed the tricky situation Core Scientific’s brass put their shareholders in a month ago...

In sum, Core Scientific’s management:

  1. Hitched their wagon to CoreWeave to trade at a premium to what it otherwise would;

  2. Created a situation where CoreWeave’s issuance of shares for this deal, all else equal, would be expected to put some downward pressure on that company’s stock and be priced in ahead of the event (and perhaps already fully has been), lowering the ultimate value they’ll be getting for selling the company;

  3. Knows that this transaction will take place after a potentially negative catalyst for the acquiring company (the end of the IPO lockup), which may put some additional downward pressure on the shares;

  4. And by all appearances left no practical way for shareholders or potential shareholders to arb this away for a while, when 2) and 3) may have already rendered the point somewhat moot.

...and it looks like the hedge funds along for the ride are none too pleased about how this has all played out.

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Luke Kawa
2h
Wall Street analysts love Micron’s earnings. The market already loved them too much ahead of time.

A “sell the news” event.

People interact at the Micron booth at the 3rd China...
markets
J. Edward Moreno

Canopy rallies after CEO stock purchase

Canopy Growth rallied on Wednesday after its CEO, Luc Mongeau, disclosed an unplanned stock purchase on Tuesday.

Mongeau, who joined Canopy from Mars in January, bought 27,469 shares at CA$1.84. The buy is worth about US$36,259.

It has been a tumultuous time for cannabis stocks, as the market in Canada (where Canopy is located) stagnates and cannabis reform in the US has yet to move forward.

markets
Matt Phillips

Robinhood, new S&P 500 leader, the subject of favorable analyst chatter

Robinhood Markets briefly touched a new all-time intraday high in early trading after the newly minted — and now top-performing — member of the the S&P 500 received some favorable write-ups from Wall Street analysts.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions. I own stock as part of my compensation.)

Piper Sandler analysts highlighted momentum in the company’s prediction markets business thanks to the rollout of contracts on college and profession football, noting that the event contracts business was running at a $200 million annualized rate so far in September. They raised their price target on the shares to $140 from $120.

“Prediction Markets (aka event contracts) present significant upside opportunity for Robinhood,” Piper Sandler’s Patrick Moley wrote.

Elsewhere, Citi analysts raised their Q3 and full-year 2025 estimates and upped their price target on the shares to $135, but kept a “neutral” rating on the stock.

“While HOOD continues to see solid momentum across the platform, we believe the stock is pricing in much of the growth potential in our view. Given current valuations and where we are in the retail cycle (closer to the highs than the lows from an activity perspective from our viewpoint), we prefer to wait for a more reasonable entry point at present.”

The stock has clearly had a heck of a run.

Through yesterday’s close, Robinhood was up nearly 240% in 2025. Since it was added to the S&P 500 on Monday, it’s now the top performer among the blue chips, trouncing previous leaders Seagate Technology Holdings and Palantir.

markets
J. Edward Moreno

UniQure surges after encouraging trial results for Huntington’s treatment

UniQure rose more than 150% in early trading Wednesday after it released trial results that showed its experimental gene therapy for Huntington’s disease slowed its progression by 75% after three years.

The treatment, AMT-130, is a one-time treatment for Huntington’s, a genetic brain disease that degrades cognitive function and muscle control. There is currently no cure for the disease.

UniQure said it plans to submit the treatment for approval to the Food and Drug Administration in the first quarter of 2026, meaning it could become available to patients later that year. The company currently makes nearly all of its revenue from gene therapies that treat hemophilia.

Halo of the sun

A tiny UK company is showing how easy it is to get an (undeserved?) Nvidia halo effect

Step 1: join a free Nvidia program. Step 2: watch stock go up. Step 3: watch stock go down.

Luke Kawa5h

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