Wealth host Brad Smith and Catalysts co-host Madison Mills cover today's biggest market stories and trending tickers.

CoreWeave (CRWV) surges after Nvidia (NVDA) reported an increased stake in the company.

Archer Aviation (ACHR) jumps on news it will be the official air taxi provider for the 2028 Olympic Games in Los Angeles.

Carnival (CCL) was upgraded to Hold from Reduce by HSBC analysts, citing strong booking trends.

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

Video Transcript

00:00 Brian Sozzi

Now time for some of today's trending tickers. We are watching CoreWeave, Archer Aviation, and Carnival. Joining me now, we've got my Morning Brief co-host, Madison Mills here on set. First up, we got to talk a little CoreWeave here. Now, here's the scene setter for CoreWeave, essentially, surging after NVIDIA reported its stake in the cloud computing company rose to 24.18 million shares, 7% of the outstanding figure for shares. We're taking a look at CoreWeave shares moving higher by about 18.6% right now on this.

00:35 Madison Mills

Yeah, it's interesting because obviously NVIDIA was a key backer behind the IPO in March here, and they're continuing to increase their stake, leading to a huge pop in the stock. It's up nearly 19% here, but some of the key fundamental headwinds remain regardless of who is backing the company. I was speaking with Gil Luria, an analyst who covers this stock earlier this week, and he said one of the key challenges here is the customer base and the company's capital structure. And as a reminder, after the company's earnings results, the revenue came in better than anticipated, a pop in the stock as a result, but then you had an increase in their debt load to, I believe, near 20 to 23 billion dollars. And that is a question mark for the company going forward about what that debt is going to look like given that we are obviously in a higher for longer interest rate environment as well, and what the ROI on that is going to look like. Also, the biggest customer for the company, OpenAI, they've got a multi-year commitment, but then when you have OpenAI continuing to announce further investments in the Middle East this week and, of course, committing to Stargate, that $500 billion project in the United States, questions about how sticky that relationship with CoreWeave is going to be.

02:04 Brian Sozzi

Yeah, that OpenAI relationship, the strategic deal, as they remarked on their earnings, saying that that added $11.2 billion in revenue backlog for them as well here. So that a positive, and then additionally they then announced a partnership with IBM delivering some more compute capacity for IBM's granite models. We're also tracking this company, Archer Aviation, extending gains on its announcement that it will be the official air taxi provider for the Olympic and Paralympic Games in 2028. Shares of Archer moving up by about 8.9, nearly 9%, right now.

02:43 Madison Mills

This is a company that I'm familiar with. I've been able to tour their manufacturing facilities in California previously. They're certainly one of the key movers when it comes to eVTOLs, electric vehicle takeoff and landings. Joby is as well, but we've seen Archer really being able to outpace its competitors. Of course, a question mark remains in regulation. The FAA has a lot of headwinds to deal with at the moment that don't revolve around getting clarity on what the regulatory backdrop is going to look like for these eVTOLs. Regardless, we've continued to see the stock surging here. You just took a look at that share price over the past year, and it's certainly been an outperformer.

03:29 Brian Sozzi

Yeah, I did an interview from inside one of the Joby ones, the competitor ones. It was still on land, though.

03:36 Madison Mills

You didn't let me go inside of one. That's cool.

03:40 Brian Sozzi

I didn't get to get air, though, in it at all. I didn't

03:46 Madison Mills

I went to a fake one. They wouldn't let me go inside a real one, which is like

03:51 Brian Sozzi

Maybe that Maybe I did the same. Maybe Maybe Maybe in our future, we'll get inside a real one, and we'll go up, electric vehicle. Yeah. That's that's what we'll do. The first CEO interview from the air, it'll be you and me.

04:05 Madison Mills

I'm proud of you.

04:14 Brian Sozzi

Something a little bit more attainable for us, perhaps, a cruise ship, Carnival getting an upgrade to hold from reduce at HSBC, removing the sell equivalent rating on Wall Street here. Take a look at shares of the cruise line operator. It's up by about 1% here on this news.

04:34 Madison Mills

Yeah, taking a look at, I mean, I'm interested in why the stock is up over 1.5% because of an upgrade because it's just removing the stock sell equivalent rating. It's still a hold rating. It's just an upgrade from reduce to hold. Having said that, obviously a little bit of a move to the upside in the stock. The analysts here are talking about how booking trends have been strong following the post-COVID-19 pandemic restart, talking about how slower profit recovery versus peers was a major concern, but having said that, cruise operators in general have demonstrated flexibility in right-sizing costs, itineraries, and having just a little bit more flexibility when it comes to capex than their peers in the travel space as well. Also noting here, CCL could do better in a serious downturn relative to other. So perhaps that is a sign of potential positive move for the stock going forward.

05:32 Brian Sozzi

All right, we're going to be watching it and the cruise line operator and all the vessels that they operate going forward from here. Maddie, thanks so much.

05:41 Madison Mills

Thank you.

05:42 Brian Sozzi

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