After Hours Summary: INOD +28.1%, AKAM +25.1%, FROG +17.5%, LASR +14.7% higher on earnings; IREN +5.7% on NVDA deal and earnings; KLAC +0.7% 10-for-1 stock split; FWRD -44.6%, DXC -19.4%, UPWK -18.3%, CRWV -8.8% lower on earnings
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: INOD +28.1%, AKAM +25.1% (also gets $1.8 bln commitment from leading frontier model provider), FROG +17.5%, LASR +14.7%, WEST +12.7%, PGNY +12%, TNDM +11%, ARLO +10.1%, PAR +8.1%, MNST +8%, CLAR +8% (also review of strategic alternatives), CALY +7.8%, XYZ +7.6%, BILL +7.3% (also 30% workforce reduction, also authorizes new $1 bln share repurchase program), GEN +7%, WLDN +6.8%, TXRH +6.5%, WSC +6.4%, WSC +6.4%, GMED +6.3%, PRTA +5.8%, ANNX +5.8%, IREN +5.7% (also strategic partnership with NVIDIA, which may invest up to $2.1 bln in IREN, secures $3.4 bln contract with NVDA; also also to acquire Ingenostrum), PTCT +4.7%, ABX +4.7%, OFRM +4.2%, RKLB +3.8% (also to acquire Motiv Space Systems; also announces series of positive news releases), RKT +3.5%, CPAY +3.1%, CRVS +2.9%, MRVI +2.8%, CON +2.7%, MCHP +2.5%, GH +2.4%, HASI +2.3% (also announces executive appointments), BBDC +2.2%, DBX +2.2%, FOXF +2.2%, OMDA +2.2% (also will serve as administrator in LLY connect program), MNR +2.2%, OUT +2.1%, WMG +1.8%, XENE +1.8%, DNLI +1.7%, WPM +1.6%, PBA +1.4% (also increases dividend), AVPT +1.2%, ALRM +1.1%, CRSR +1.1%, BLFS +1.1%, PCTY +1% (also increases share repurchase authorization by $1 bln), RSG +1%, GRND +0.9%, BBIO +0.8% (also authorizes new $500 mln share repurchase program), OTEX +0.8%, CENX +0.7%, MAIN +0.5%, NWSA +0.4%, GPCR +0.4%, MP +0.2%, WYNN +0.2%, AHR +0.1%, JANX +0.1%
Companies trading higher in after hours in reaction to news: BFAM +6.8% (to join S&P SmallCap 600) RELY +3.5% (to join S&P SmallCap 600) AERO +2.8% (April traffic), MAT +2% (activist investor calls on Mattel to explore strategic alternatives; MAT responds), IQV +1.4% (increases share repurchase authorization by $2 bln), DVN +1.4% (announces a series of capital return actions), DDD +0.8% (Cadillac Formula 1 Team deployed seven SLA 3D printing systems), KLAC +0.7% (10-for-1 stock split), CHRD +0.4% (files mixed securities shelf offering), BLSH +0.1% (submits applications to CFTC), BTU +0.1% (Board rejects Chair Robert Malone's resignation)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: FWRD -44.6%, KDK -36.4% (also General Dynamics collaboration; also autonomously hauling freight with Roehl Transport; also will conduct pilot and explore deployment of trucks at log-hauling operations), TSSI -29.6%, EVCM -27.5%, DXC -19.4%, ABSI -19%, HUBS -18.6%, UPWK -18.3% (also announces restructuring plan, includes 24% workforce reduction), AORT -18.1%, NET -17.8% (also announces reduction in workforce), DNA -16.8% (also completes divestiture of Biosecurity), KODK -16.6%, FIGS -16.2%, STRT -15.4%, TTD -15.1% (also Chief Strategy Officer to leave and join OpenAI, according to AdWeek), CTKB -14.4%, REAL -11.3%, GSIT -11.3%, SOUN -11.2%, HRTG -11%, CAI -10.7%, TOST -10.3%, INDI -9.1%, EXPE -9% (also authorizes new $5 bln share repurchase program), CRWV -8.8%, AAOI -8.7%, SMR -8.6%, ASLE -7.5%, SVCO -7.1%, MELI -6.6%, ACLS -6.5%, FBIN -6%, PDFS -5.5%, ZYME -5.2%, STOK -5.2%, CARG -5.1%, BLND -4.9%, COIN -4.6%, RNG -4.2%, CVSA -3.9%, TXG -3.5%, MTD -3.4%, NTRA -3.3%, ZD -3%, XPOF -2.9%, FIP -2.7%, CLNE -2.6%, LYFT -2.6%, SG -2.5%, ASTH -2.4%, RCAT -2.4%, OPEN -2.3%, ABNB -2.1%, MSI -2.1%, AFRM -2%, ARWR -1.9%, DIOD -1.9%, GILD -1.9%, YELP -1.8%, ED -1.7%, DKNG -1.5%, G -1.2%, CRNX -1.1%, LPTH -1.1%, OLN -1%, NKTR -0.7%, ELVN -0.7%, MSDL -0.7%, MCK -0.6% (also $2.25 bln accelerated share repurchase program), POWI -0.6%, QNST -0.6%, CWEN -0.4%, PSEC -0.4%, GSAT -0.3%, SOBO -0.3%, ICUI -0.2%
Companies trading lower in after hours in reaction to news: CAPR -12.1% (files for preliminary injunction), LFST -9.6% (announces launch of 35 mln share offering by selling shareholders; co concurrently to purchase 6 mln shares), STNG -3.2% ($150 mln convertible notes offering), VVX -1.2% (stock offering by selling shareholders), HIVE -1% (announces up-listing to TSX and provides corporate update), PSNL -1% (files mixed securities shelf offering), NVDA -0.6% (NVIDIA and IREN announce a strategic partnership, NVDA has right to invest up to $2.1 bln in IREN), MUSA -0.1% (increases dividend)
Research Calls I
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Upgrades:
- Agilon Health (AGL) upgraded to Buy from Hold at Deutsche Bank, tgt $49
- Agilon Health (AGL) upgraded to Buy from Hold at Jefferies, tgt $48
- Alcoa (AA) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $70
- BrightView (BV) upgraded to Neutral from Underweight at JPMorgan, tgt $14
- Fortinet (FTNT) upgraded to Buy from Neutral at BTIG Research, tgt $125
- Freshpet (FRPT) upgraded to Overweight from Neutral at JPMorgan, tgt $68
- LP Building Solutions (LPX) upgraded to Outperform from Market Perform at BMO Capital, tgt $94
- Oracle (ORCL) upgraded to Buy from Neutral at Arete, tgt $255
- Selective Insurance (SIGI) upgraded to Outperform from Market Perform at BMO Capital, tgt $97
- United Therapeutics (UTHR) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $735
- Agilon Health (AGL) upgraded to Buy from Hold at Deutsche Bank, tgt $49
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Downgrades:
- Accuray (ARAY) downgraded to Neutral from Buy at BTIG Research
- Amplitude (AMPL) downgraded to Neutral from Buy at BofA Securities, tgt $8
- Angi (ANGI) downgraded to Sector Weight from Overweight at KeyBanc
- Chiron Real Estate (XRN) downgraded to Neutral from Buy at Compass Point, tgt $38
- Clear Secure (YOU) downgraded to Neutral from Buy at DA Davidson, tgt $60
- Kennametal (KMT) downgraded to Hold from Buy at Jefferies, tgt $47.50
- Portillo's (PTLO) downgraded to Neutral from Buy at Guggenheim
- QuidelOrtho (QDEL) downgraded to Hold from Buy at Jefferies, tgt $12.50
- Relx (RELX) downgraded to Equal Weight from Overweight at Morgan Stanley
- Vertical Aerospace (EVTL) downgraded to Neutral from Overweight at Cantor Fitzgerald
- Accuray (ARAY) downgraded to Neutral from Buy at BTIG Research
- Others:
- CNH Industrial (CNH) initiated with a Market Perform at Bernstein, tgt $11
- Innovex (INVX) initiated with a Buy at Citigroup, tgt $35
- CNH Industrial (CNH) initiated with a Market Perform at Bernstein, tgt $11
Early premarket gappers
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Gapping up:
- AGL +49.1%, FLNC +30.6%, SITM +29.9%, CCRN +27.9%, PCT +23.1%, BLBD +21.6%, HNRG +18.9%, KLIC +15.2%, FTNT +15.2%, EZPW +13.3%, ELA +13%, LFST +12.8%, SEZL +11.4%, CPS +10.9%, ORA +10.8%, ARRY +10.6%, BKH +10.3%, DASH +10%, FA +9.4%, CGNX +9.2%, GCT +8.9%, ACIW +8.8%, BBSI +8.3%, ALB +8.1%, MKSI +8.1%, IPI +7.1%, SVV +7%, BTG +6.9%, SNEX +6.5%, XNCR +6.5%, SD +6.4%, ROOT +6.3%, EXK +6%, BLLN +5.9%, CELH +5.6%, GOLD +5.5%, EFXT +5.2%, HPK +5%, RUN +4.8%, PTC +4.6%, INSE +4.2%, YSG +4.2%, EQX +4.2%, APP +4.1%, APP +4.1%, HRB +4%, GNK +3.8%, ACVA +3.8%, AMH +3.7%, DGII +3.7%, PRVA +3.6%, CAPL +3.5%, IHG +3.4%, LTC +3.2%, CDE +3.1%, RGLD +3%, MUX +3%, MRNA +2.9%, RELY +2.9%, HMN +2.8%, MDA +2.6%, HLI +2.5%, LZ +2.5%, CMP +2.4%, VRRM +2.4%, WES +2.1%, ECPG +2.1%, DDOG +2%, RYZ +2%, TRGP +2%, VCTR +1.9%, FSM +1.9%, PTRN +1.8%, DV +1.8%, MFIC +1.7%, INVA +1.7%
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Gapping down:
- FSLY -21.1%, AMPL -19.5%, ADMA -19.2%, WHR -16.5%, AOSL -16.2%, SRPT -15.8%, TPC -12.4%, NRDS -11.5%, BYND -10.8%, SNAP -9.5%, XZO -9.1%, KMPR -8.5%, PAHC -8.3%, GTN -7.9%, RDW -7.8%, LFMD -7.6%, ALVO -7.6%, CORZ -7.4%, MNKD -7.3%, AMPX -7.3%, ARM -7.1%, ALTO -6.8%, EPAM -6.5%, TS -6.2%, HCI -5.8%, IONQ -5.7%, EE -5.6%, LB -5.3%, ARQT -5.3%, ALNT -5.2%, AEVA -4.8%, CG -4.7%, SYM -4.7%, CG -4.7%, PR -4.6%, XRN -4.5%, MAC -4.5%, FNF -4.3%, CTRI -4.3%, RGR -3.6%, MGEE -3.5%, CSV -3.5%, BROS -3.5%, BKD -3.4%, XFOR -3.2%, AUR -3.2%, OBDC -3.2%, MGY -3.1%, USPH -3.1%, RDWR -3.1%, COHR -3%, GT -3%, ERII -2.8%, TROX -2.8%, ACAD -2.4%, CXW -2.4%, SMA -2.4%, VLRS -2.3%, AUGO -2.1%
>>> Up
* AJ Bell Raised to Neutral at Citi; PT 520 pence
* Anora Raised to Accumulate at Inderes; PT 3.60 euros
* ASML Price Target Raised to EUR 1,710 from EUR 1,598 by Bank of America
* Chevron Raised to Hold at Punto Casa de Bolsa; PT $202
* Cloetta Raised to Buy at Nordea; PT 59 kronor (+)
* Exel Composites Raised to Accumulate at Inderes; PT 10.50 euros
* Exxon Raised to Hold at Punto Casa de Bolsa; PT $160
* Netcompany Raised to Buy at ABG; PT 420 kroner
* Oracle Raised to Buy at Arete; PT $255 (+)
* Relais Group Raised to Buy at Inderes; PT 18 euros
* Scatec Raised to Buy at Pareto Securities; PT 120 kroner
* Scorpio Tankers Raised to Buy at BofA
* Siegfried Raised to Buy at Research Partners
* Vestas Raised to Neutral at SB1 Markets; PT 180 kroner
* Vestas Raised to Neutral at SB1 Markets; PT 180 kroner
* Vestas Raised to Buy at Jyske Bank; PT 220 kroner
>>> Down
>>> Down
* Ambu Cut to Hold at ABG; PT 65 kroner
* Continental Price Target Cut to EUR 77 from EUR 79 by Bank of America
* Credit Agricole Cut to Underperform at KBW; PT 18 euros
* Electrolux Price Target Cut to SEK 58 from SEK 70 by UBS
* Endesa Cut to Hold at Renta 4 (+)
* Fagerhult Group AB Cut to Hold at ABG; PT 23 kronor
* Infineon Cut to Neutral at Oddo BHF; PT 60 euros
* Rovi Cut to Neutral at BNP Paribas; PT 75 euros
* Rovi Cut to Neutral at BNP Paribas; PT 75 euros
* Rovi Cut to Neutral at Oddo BHF; PT 76 euros (+)
* Tele2 Cut to Neutral at Citi; PT 185 kronor
* Telenor Cut to Neutral at Citi; PT 167 kroner
* Telia Cut to Neutral at Citi; PT 49 kronor
>>> Initiation
* 74Software SA Rated New Outperform at Oddo BHF; PT 46 euros
>>> Initiation
* 74Software SA Rated New Outperform at Oddo BHF; PT 46 euros
* AT&S Rated New Overweight at Cantor; PT 133 euros
* Basilea Rated New Hold at Octavian; PT 67 Swiss francs (+)
* Chapters Group Rated New Buy at Berenberg; PT 42 euros
* Rentguarantor Rated New Buy at Cavendish; PT 67 pence (+)
>>> Call
>>> Call
* AJ Bell Loses Only Sell as Citi Sees Upcoming Print as Catalyst (+)
* AMG Ebitda, Second-Quarter Outlook Beat Expectations, Citi Says
* AMG Ebitda, Second-Quarter Outlook Beat Expectations, Citi Says
* Citi Downgrades Nordtic Telco Stocks as Growth Catalysts Fade
* RELX Rating Cut, Morgan Stanley Sees Upside after Shares Drop (+)
Is xAI a neocloud now?
On Wednesday, xAI and Anthropic announced a surprise partnership that has the Claude-maker buying out “all of the compute capacity at [xAI’s] Colossus 1 data center,” roughly 300MW that allowed Anthropic to immediately raise its usage limits. It’s a huge deal for xAI, likely worth billions of dollars. More importantly, it immediately monetized one of the company’s most impressive accomplishments, turning xAI from a consumer to a provider of compute.
It’s tempting to see the arrangement as a shot at OpenAI amid the ongoing lawsuit. But Musk’s explanation on X was that xAI had already moved training to a newer data center, Colossus 2, and xAI simply didn’t need them both.
In the short term, there’s an obvious logic at work. xAI’s existing products are mostly focused on Grok, which has seen plummeting usage since the image generation debacles earlier this year. If xAI’s data center buildout is much more than what Grok needs to operate, partnering with Anthropic adds a lot of green to the balance sheet. This is especially useful as the company, now combined with SpaceX, speeds toward an IPO. More broadly, having Anthropic lined up as a customer makes it easier to believe that SpaceX’s orbital data center play might actually work.
But beyond the short-term benefit, the Anthropic partnership sends an unusual message about where Elon Musk’s priorities really lie. It suggests the company’s real business may be more about building data centers than training AI models.
It’s rare to see a major tech company treat compute resources this way when companies like Google and Meta, which are also training models, are building more data centers. It’s an easy point to miss, because so many of these companies are working as enterprise AI vendors, online services, and cloud providers all at once. But when forced to make a choice between selling more available compute to customers and preserving some to build their own tools, they reliably choose door No. 2.
Just last month, Sundar Pichai admitted on a call that Google Cloud revenue was lower than it could have been because the company was “capacity constrained” — and when given the choice of renting out their GPUs or using them to develop AI products, Google chose the AI products.
Facebook has faced a more extreme version of the same constraint, spinning up an entirely new cloud apparatus just to ensure they would have enough GPU power to chase Mark Zuckerberg’s AI ambition. As he put it when announcing Meta Compute in January, “How we engineer, invest, and partner to build this infrastructure will become a strategic advantage.”
The key word there is “strategic.” Both Zuckerberg and Pichai are looking toward a future where AI is powering the most popular and lucrative systems in the world. Computing power isn’t just a way to satisfy today’s inference demand, but to build tomorrow’s products — and running short on compute means missing out on that chance.
By focusing on data centers (earthbound and otherwise), xAI is positioning itself more like a neocloud business: buying GPUs from Nvidia and renting them out to model developers like Anthropic. It’s a far more difficult business, squeezed by both chip suppliers and the shifting cycles of demand. The valuations for most active neoclouds reflect that reality: xAI was valued at $230 billion in its January funding round; CoreWeave, which oversees a comparable quantity of computing power, is worth less than a third of that.
Musk’s version of a neocloud is more ambitious, as you might expect. Some of the data centers might be in space — at least by 2035, if things go according to plan. xAI will be making its own chips at the Terafab, which will take away some but not all of Nvidia’s pricing power. But none of it changes the basic economics of the neocloud business.
As recently as the February all-hands, xAI had real ambitions in software. That was the presentation that unveiled the orbital data center project, but it also teased significant ambitions in coding (since bolstered by the Cursor partnership) and interesting ideas like leveraging computer use into full-scale digital twins (in the unfortunately named Macrohard project). These are the kind of long-horizon projects that need committed computing resources to succeed. As long as xAI is selling large quantities of compute to its competitors, it’s hard to think such new ambitions have much of a future.