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July 10, 2025

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Core Scientific deal reveals cracks in CoreWeave’s bull case

3 Mins Read

Shares of Core Scientific plunged after AI cloud provider CoreWeave announced plans to acquire the data center firm in an all-stock deal, a reaction that defies the typical market response to acquisition news.

Instead of rallying to reflect the purchase price, Core Scientific stock dropped 25%, closing at $13.43 on Wednesday—far below the deal’s implied value.

The trading pattern indicates that investors anticipate a significant drop in CoreWeave’s stock price before its acquisition of Core Scientific is finalized.

The acquisition is expected to close in the fourth quarter.

Deal value hinges on volatile CoreWeave stock

The agreement, announced Monday, would see Core Scientific shareholders receive 0.1235 shares of CoreWeave for every Core Scientific share.

At CoreWeave’s pre-deal trading price of $165.20, that implied a value of $20.40 per Core Scientific share.

However, CoreWeave shares have already fallen to $153.05, dragging the implied deal value down to $18.90.

Even that figure may be overly optimistic. Based on options market pricing, CoreWeave stock could trade closer to $115 by November.

At that price, the value of the deal to Core Scientific shareholders would be just $14.20—a level far closer to where shares are currently trading.

This uncertainty stems from a key feature of the deal: it lacks the usual protections often included in all-stock mergers.

There’s no price collar or floor to safeguard Core Scientific shareholders if CoreWeave’s stock declines before the deal closes.

That omission has left investors wary and the stock vulnerable.

Arbitrage traders stay cautious

Normally, such a large discount between the current trading price and the implied deal value would attract merger arbitrage traders hoping to profit from the spread.

But the lack of price protection and volatility in CoreWeave’s stock complicates such bets.

“Using the options market, you can currently buy or sell shares of CoreWeave in November for $115,” says Kevin Mak, a trader and director of the Real-Time Analysis and Investment Lab at Stanford Graduate School of Business, in a Barron’s report.

“This is not a judgment; this is what the market is pricing it at.”

Adding to the pressure, CoreWeave is a richly valued stock.

Since its IPO, the company has surged 283% on the back of triple-digit revenue growth and limited share liquidity.

However, it trades at 8.7 times projected 12-month sales—nearly double the Nasdaq Composite average of 4.4.

The average Wall Street price target for CoreWeave is $94.56, suggesting further downside from current levels.

Lockup expiry could trigger stock pressure

Investor concerns may intensify in August, when CoreWeave’s IPO lockup period expires.

Early backers—including Magnetar Financial, which owns more than 30% of the company—will be free to unload their shares.

Magnetar’s stake, worth around $14.7 billion, accounts for three-quarters of its portfolio.

A move to reduce exposure could flood the market with stock, driving prices lower.

Despite CoreWeave’s strategic rationale for buying Core Scientific—mainly to gain control over the data center capacity it already leases—investors are signaling doubts over the sustainability of its valuation and the fairness of the deal terms.

The post Core Scientific deal reveals cracks in CoreWeave’s bull case appeared first on Invezz

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In Business

Boeing delivers most airplanes since late 2023 after ramping up 737 Max output

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Boeing delivered 60 airplanes last month, the most since December 2023, as the plane maker seeks to raise production of its bestselling 737 Max jets after a series of manufacturing and safety problems.

The tally was the highest since before a door plug from one of its new 737 Max 9 planes blew out midair in January 2024, sparking a new crisis for the company and slowing production and deliveries of aircraft. Of the monthly total, 42 were 737 Maxes, going to customers including Southwest Airlines, Alaska Airlines and United Airlines.

CEO Kelly Ortberg, who took the top job at Boeing last August, has said the company has made progress in improving production rates and quality on its factory lines.

For the three months ended June 30, Boeing handed over 150 airplanes, its best second quarter since 2018, before two crashes of Max planes five months apart grounded the jets and sparked a multiyear crisis at the top U.S. exporter. That was also the last year Boeing posted an annual profit. Its problems also gave rival Airbus a bigger lead over Boeing.

Boeing this spring had been producing about 38 Max aircraft a month and will need Federal Aviation Administration approval to go above that limit, which the agency set after the door plug accident. Ortberg said at a Bernstein investor conference in late May that he’s confident that the company could increase production to 42 of the jets a month.

The company booked 116 gross orders in June, or 70 net orders when including cancellations and accounting adjustments. Boeing often removes or adds orders to its backlog for a variety of reasons including customers’ financial health.

Boeing’s backlog stood at 5,953 as of June 30.

The manufacturer is set to report second-quarter financial results on July 29, when investors will be focused on Ortberg’s plan to increase production and aircraft deliveries.

This post appeared first on NBC NEWS

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In Politics

Watchdog backs Rubio’s sanctions on UN official over ‘shameful efforts’ targeting US, Israel

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The Biden-era kid gloves are off.

On Wednesday, Secretary of State Marco Rubio announced the United States is imposing sanctions on Francesca Albanese, the controversial United Nations (UN) Special Rapporteur on Palestinian rights.

‘Albanese’s campaign of political and economic warfare against the United States and Israel will no longer be tolerated,’ Rubio posted on X. ‘We will always stand by our partners in their right to self-defense.’

Albanese has pushed to haul U.S. and Israeli officials before the International Criminal Court (ICC), drawing outrage from lawmakers, diplomats, and human rights advocates alike.

In multiple reports and public comments since her 2022 appointment, Albanese has accused Israel of apartheid and dismissed Hamas violence as ‘not surprising.’ According to her July 2025 report to the UN Human Rights Council, Albanese claimed the U.S. may be ‘liable for the international crime of aggression’ for President Trump’s strikes on three Iranian nuclear sites.

Albanese has also taken aim at American-based companies supplying defense technologies to Israel, suggesting they should face legal consequences for ‘aiding and abetting’ alleged crimes. In a now‑deleted 2022 post, she questioned whether ‘the Jewish lobby’ controlled U.S. foreign policy, a comment she later retracted amid criticisms that it espoused antisemitism.

‘The State Department is to be congratulated for finally taking action against Albanese, her virulent and violent antisemitism and her constant attacks on the United States, American businesses and the very existence of the State of Israel,’ said Anne Bayefsky, President of Human Rights Voices, in an exclusive statement to Fox News Digital. 

‘Albanese poses a direct threat to the well-being and security of U.S. citizens – not to mention her utter disregard for the theoretical purposes and principles of the United Nations – and as such, the United States is not obligated to admit her. President Trump’s Executive Order requiring action on international actors bent on throwing American and Israeli soldiers into International Criminal Court dungeons in the Hague needs even more enforcement,’ Bayefsky added.

 

‘Add Navi Pillay and her diabolical UN Commission of Inquiry. There is an answer for those who would incorrectly argue that the U.S. is impotent in the face of the U.S-UN host agreement: kick the UN out of the U.S. along with Albanese and her UN partners in crime,’ the statement concluded.

Israeli leaders quickly backed Rubio’s move. ‘A clear message. Time for the UN to pay attention!’ Foreign Minister Gideon Sa’ar posted in response.

Israel’s UN Ambassador Danny Danon also weighed in to the Jerusalem Post: ‘Albanese consistently undermines the credibility of the UN by promoting false and dangerous narratives… We will not remain silent.’

Hillel Neuer, Executive Director of UN Watch, weighed in with a statement to Fox News Digital, writing: ‘This is a bold and courageous move by Secretary Rubio. No UN official — in this case, a purported official, as her reappointment was illegal — has ever been sanctioned before in history. Then again, no UN official has ever been condemned for Holocaust distortion and antisemitism by France, Germany, Canada, and both Democratic and Republican US administrations.’

‘She will never again spread her poison on American campuses or enter the country. Justice is served. Good triumphs over evil.’

This post appeared first on FOX NEWS

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