LIVE NOW: SUPERMICRO & COREWEAVE EARNINGS REPORT
In a Nutshell
SMCI beat earnings expectations with a 139% EPS surprise despite a revenue miss, driving the stock up 10% in after-hours trading, while CoreWeave reported a double beat but still fell 5% due to its high valuation at 144x earnings. The broader market showed bearish patterns with the Nasdaq making lower highs and lower lows, despite remaining above key moving averages. Both stocks demonstrated extreme volatility typical of earnings reactions, with SMCI recovering from $23 lows to trade at $34 and CoreWeave showing 32% downside from recent highs.
These notes were generated by AI and may contain inaccuracies.
Ricky with TechBud Solutions hosts a live stream on August 11th covering Super Micro (SMCI) and CoreWeave earnings reports after the bell. SMCI is currently up 0.75% finding support around $31 per share. The stock is described as incredibly volatile with a notorious track record, having been one of the best performing stocks for 2024 before a quick correction. The company has faced investigations for fraud, accounting fraud, accounting regulations, and smuggling Nvidia GPU chips by executives. Despite these issues, the company trades at a very low P/E ratio.
CoreWeave shows a pattern of consolidation and is described as potentially overbought. The stock exhibits a consistent pattern of rallying and selling off repeatedly. The host notes they are not a fan of either company but finds them volatile enough to be worth watching for market reactions.
The Nasdaq had a relatively bearish day despite a rally into the close, showing a descending pattern with lower highs and lower lows. The market is described as incredibly overbought, testing previous resistance levels without selling off. The host notes that markets can stay irrational longer than traders can stay solvent, making shorting without confirmation risky.
SMCI is expected to report 71 cents EPS, lower than the previous quarter, with higher expected revenue. The host recommends Investing Pro software for fundamental analysis, mentioning a sale with the first link in the description. Historical market reactions show a pattern of two positive, two negative, nearly break-even, nearly break-even, then three negative reactions.
Light reports first and is down 2.5%, later recovering from 4.7% losses. SMCI begins showing movement, reaching up 7% then 8% on the day. The host describes SMCI as a wild card that has performed well fundamentally but is run by what they believe is a terrible team.
SMCI's P/E ratio is 16.2 times with a big beat on EPS and slight miss on revenue. The stock reaches 9% gains, trading at $34.40 after recovering from lows of $23. The host notes the stock previously traded at $122 and is no stranger to pumping, but warns that holders must accept high volatility with strong rallies followed by strong sell-offs.
SMCI shows a 139% EPS beat with a slight revenue miss, resulting in a 10% move after market hours. Light recovers from lows of 7.77 to near break-even. CoreWeave begins reporting with a big gap down, breaking support at $86 leading to a 5% decline, later recovering to show 32% downside from highs.
CoreWeave reports a double beat on both EPS and revenue, though EPS is down 90% year-over-year. The stock trades at 144 times earnings and is described as very pricey. Cava also beats expectations but shows volatility. SMCI begins slight retracement after becoming overbought.
The host warns about trading during extended hours, noting limit orders must be used and there's greater risk due to lower volume. Earnings calls can send stocks against positions, and the host advises caution for those not comfortable with the risk level.
NBIS reports tomorrow pre-market. The host reminds viewers about Wednesday's CPI data report expecting core inflation to drop and overall inflation to decrease from 3.5% to 3.4%. Positions held overnight will be exposed to volatility from this inflation report.
CoreWeave recovers 4% after being down 5%, while SMCI holds at 8% gains. Despite some bearish movements, stocks are making comebacks. The Nasdaq shows a descending pattern but remains above EMA and moving averages, indicating overall bullish outlook despite being elevated with huge downside potential.
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