Nasdaq-100 Reshuffle: CoreWeave Replaces Charter Communications
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: Fool
- Nasdaq Reshuffle: The recent reshuffling of the Nasdaq-100 index has seen CoreWeave replace Charter Communications, highlighting the market's strong focus on AI cloud computing and investor concerns regarding Charter's competitive threats.
- Financial Performance Comparison: While CoreWeave's revenue surged over 100% year-over-year to $2 billion last quarter, it remains unprofitable with a $10 billion free cash flow loss over the past 12 months, whereas Charter has maintained positive free cash flow for the last decade, indicating financial stability.
- Valuation Discrepancy: CoreWeave's price-to-sales ratio stands at 7.7, reflecting a premium valuation despite low gross margins and high capital intensity; in contrast, Charter's lower price-to-sales ratio and profitability make it a more attractive investment in the current market.
- Competitive Landscape Analysis: Although CoreWeave benefits from the current trend of AI data center spending, it faces competition from major tech firms, and as market growth normalizes, its profitability will be further challenged, while Charter continues to leverage its stable wired internet services to maintain market position.
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Analyst Views on CHTR
Wall Street analysts forecast CHTR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 135.440
Low
165.00
Averages
286.91
High
428.00
Current: 135.440
Low
165.00
Averages
286.91
High
428.00
About CHTR
Charter Communications, Inc. is a broadband connectivity company providing cable television (TV) for streaming, and from high-speed Internet to a converged broadband, wireless fidelity (Wi-Fi) and mobile experience. The Company offers its customers subscription-based Internet, mobile, video and voice services, with prices and related charges based on the types of service selected. Its bundled services, including a combination of its Internet, mobile, video and voice products that are available to its passings. It also provides its customers with a broadband connectivity service, including fixed Internet, Wi-Fi and mobile. It provides wireline voice communications services using voice over Internet protocol (VoIP) technology to transmit digital voice signals over its network. Its voice services include unlimited local and long distance calling to the United States, Canada, Mexico and Puerto Rico, voicemail, call waiting, caller identification (ID), call forwarding and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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