Bitcoin-linked stocks, including Marathon Digital Holdings and Coinbase, surged as Bitcoin surpassed $90,000. CoreWeave received positive coverage from analysts, indicating strong demand for AI cloud services. In contrast, Northrop Grumman’s stock fell sharply after disappointing earnings reports and lower EPS forecasts, amidst contract delays and rising costs.
In today’s market, Bitcoin-associated stocks are experiencing significant gains, particularly as cryptocurrencies, notably Bitcoin, begin to rise again, surpassing the $90,000 mark. Despite a lack of substantial market catalysts, investors are eager to acquire shares in crypto-focused companies such as Marathon Digital Holdings, MicroStrategy, and Coinbase. Many of these firms, however, have endured considerable losses this year and remain significantly underperforming compared to previous values.
CoreWeave, a cloud computing company recently public, is also gaining attention following several optimistic ratings from Wall Street analysts, including a “buy” recommendation from Bank of America. Analyst Brad Sills anticipates strong demand in the AI infrastructure-as-a-service sector, predicting substantial growth through 2028. CoreWeave’s competitive advantage lies in its expedited GPU deployment and effective utilisation rates, bolstered by proprietary technology and energy access, even while trading at a lower valuation than typical data centre competitors.
Conversely, Northrop Grumman’s share prices plummeted after the aerospace and defence contractor reported disappointing Q1 earnings, prompting a downward revision of its EPS outlook for the year. The company indicated that rising manufacturing costs related to the production of the B-21 Raider stealth bomber contributed to the poor performance. Additionally, delays in government contracts for various defence technologies have further hindered sales growth this quarter, affecting not only Northrop Grumman but also other major defence contractors such as Halliburton, RTX, and Lockheed Martin as investor sentiment worsens due to perceived governmental pressures.
