CoreWeave Just Joined the Nasdaq-100. Here's Why I Would Buy the Stock It Is Replacing Instead.
Momentum can work in the near term, but fundamentals matter over the long term.
Overview
The wild stock moves driven by the artificial intelligence (AI) and space economy boom have shaken up the constituents of the Nasdaq-100 index. The index holds the 100 largest non-financial stocks listed on the Nasdaq, and the boom in AI and space stocks has ousted five companies from the index in its latest reshuffling.
One stock now included in the Nasdaq-100 is CoreWeave (NASDAQ: CRWV), which replaced Charter Communications (NASDAQ: CHTR). Investors are optimistic about CoreWeave and its aggressive spending to build an AI cloud computing business, while there are major fears over competitive threats to Charter's home internet business.
Details
However, looking at the financials, it is clear that investors should find Charter Communications a much more attractive opportunity than CoreWeave at the moment. Here's why.
Source
Originally published at www.fool.com.