Earnings season might be slowing down for the S&P 500, but that doesn’t mean the action stops.
When the big index names take a breather, we turn our focus to the rest of the market - and that’s often where the real fireworks happen.
Yesterday's earnings reactions were packed with wild volatility, but two moves stood out among the rest.
One of AI’s fastest-growing players got crushed under the weight of its debt, and an online storytelling platform staged a record-breaking rally after inking a dream partnership.
Here's what happened...
This AI growth story is meeting a wall of debt
CoreWeave $CRWV went public earlier this year and was met with a warm welcome from the market. Price rallied nearly 500% in less than 50 trading sessions.
They have been a darling of the AI boom, feeding insatiable demand for GPU cloud power.
But breakneck growth needs fuel - and they are guzzling debt like jet fuel.
Yesterday’s mixed headline numbers sparked a brutal -20.8% reaction, the largest 1-day decline in the stock's history.
It was nasty...
Bulls can point to CRWV still holding above the IPO VWAP, but that could change fast.
We think yesterday's price action was likely an initiation thrust for a new downtrend.
Disney meets the web
While CoreWeave bled, Webtoon Entertainment $WBTN ripped over 80% higher after reporting a double beat. The stock also decisively reclaimed a shelf of former highs.
The catalyst? A brand-new content deal with Disney $DIS, which opens the door to Marvel, Star Wars, and 20th Century Fox intellectual property.
For a platform already beloved by Gen Z, they now have a direct line to mainstream dominance.
In addition, this caught the short sellers with their pants down. As of the latest FINRA report, short interest is above 20%, which is more than enough to spark an epic short squeeze.
We love how there was a real fundamental catalyst to spark this squeeze higher. It adds to our conviction.
If WBTN is above 14.50, the path of least resistance is likely higher for the foreseeable future.
Thank you for reading
-The Beat Team
P.S.: If you want the inside track on how technology is reshaping our world - from AI leaders like CoreWeave to flying taxis, nuclear breakthroughs, and the companies building tomorrow’s infrastructure - you need Riley Roseby’s Godspeed.
Each week, Riley delivers sharp, actionable insights on the trends about to explode into the mainstream.
