CoreWeave beats Q2 revenue estimates, boosts guidance on surging AI demand despite widening loss

South Africa

The Top 40 index added 0.56% yesterday to settle at 93,808.6 points, while the All Share index gained 0.64% to reach 101,271.2 points. South Africa’s unemployment rate rose for the second consecutive quarter to 33.2% in Q2, reflecting persistent labour market challenges for the year-old coalition government. Total unemployed increased to 8.367 million, with six out of ten sectors seeing job losses, notably in community services, agriculture, and finance. The government submitted a revised trade offer to Washington to lower the newly imposed 30% U.S. tariff on exports, though JPMorgan anticipates limited impact on South African assets, given that markets have largely priced in the tariff headwinds. The persistent high unemployment and trade tensions remain key risks for the economy and investor sentiment.

European Union

European equities closed higher on Tuesday, supported by optimism around the U.S.-China tariff truce and anticipated Federal Reserve rate cuts, despite technology stocks limiting gains. The STOXX 600 index rose 0.2%, led by a 1.5% advance in energy stocks. Vestas Wind Systems outperformed with a 4.7% gain after securing U.S. orders. Earnings forecasts improved to 4.8% growth for Q2, boosted by eased concerns following the EU-U.S. tariff deal. European leaders and Ukrainian President Zelenskiy are set to discuss peace prospects with President Trump, with markets cautious about potential U.S. influence on Ukraine’s negotiating position.

United States

The S&P 500 and Nasdaq reached record closing highs on Tuesday, buoyed by July inflation data aligned with expectations, reinforcing bets on a Federal Reserve rate cut next month. The Consumer Price Index rose 0.2% monthly and 2.7% annually, slightly below forecasts, prompting renewed calls from President Trump for looser monetary policy. Alphabet shares gained 1.2% amid a $34.5 billion bid for its Chrome browser, while Intel surged 5.6% following a high-profile CEO meeting. Despite robust markets, concerns linger over economic data quality and Federal Reserve leadership, with attention on Trump’s nominee for the Bureau of Labor Statistics commissioner.

Asia

Asian equities rose amid subdued U.S. dollar trading, as economic data revealed resilience and ongoing central bank accommodation. Japan’s wholesale inflation slowed for the fourth month, yet rising food and agricultural prices suggest persistent price pressures that could support Bank of Japan rate hikes. Manufacturer confidence improved in August following a Tokyo-Washington trade agreement but remains cautious over potential U.S. tariff impacts. Meanwhile, China Evergrande liquidators reported $255 million in asset sales, controlling over 100 subsidiaries amid creditor claims now totalling $45 billion—substantially higher than 2022 liabilities—highlighting ongoing distress in China’s largest debt restructuring.

Commodities

Gold edged higher on Wednesday, supported by a softer dollar following mild U.S. inflation data that reinforced expectations for a September Federal Reserve rate cut. Attention remains on upcoming U.S.-Russia talks regarding the Ukraine conflict. Oil prices were largely steady after a decline, with U.S. crude inventories rising 1.52 million barrels last week, signalling the end of peak summer demand. Industry forecasts from OPEC and the EIA predict increased global production in 2024 but anticipate U.S. output to peak in 2025 before falling in 2026 due to lower prices. Refiners appear to be reducing runs post-summer driving season.

Currencies

The U.S. dollar weakened on Wednesday after July’s tame inflation data bolstered expectations of a Federal Reserve rate cut next month. Consumer price increases aligned with forecasts, reflecting limited pass-through from President Trump’s tariffs to goods prices. The market now prices in a 98% probability of rate easing in September, pressuring the dollar. Additionally, concerns over Trump’s efforts to consolidate control over U.S. institutions contributed to dollar weakness. Investors remain watchful of Fed policy shifts and geopolitical developments that could influence currency valuations in the near term.

Sasol Limited (SOL) +11.09%

Sasol expects earnings per share (EPS) to increase by over 100%, reaching between R7.00 and R12.00, with headline EPS (HEPS) forecast to rise between 85% and 100%, to R33.60–R36.30. Adjusted EBITDA is anticipated to decline by 10–17% to between R50 billion and R54 billion. The earnings improvement was driven by higher chemicals basket prices, stringent cost control, significantly lower impairments, and a R4.3 billion cash settlement from Transnet. These gains were partly offset by a 15% decline in Brent crude prices, weaker refining margins, a 3% drop in sales volumes, and lower unrealised financial gains. Significant impairments were recognised in liquid fuels refineries and Mozambique assets, while a R1 billion impairment reversal was recorded in China Care Chemicals. The financial information is unaudited, and full results will be released on 25 August 2025.

ADvTECH Limited (ADH) +3.06%

ADvTECH advises that normalised earnings per share (NEPS), headline earnings per share (HEPS), and basic earnings per share (EPS) for the six months ended 30 June 2025 are expected to increase by 13–18% compared to the prior period. This translates to a range of 110.3 to 115.3 cents per share, compared to NEPS and HEPS of 97.7 cents, and EPS of 97.6 cents per share for the six months ended 30 June 2024. The group uses NEPS to exclude one-off transactions and corporate action costs from reported earnings. The financial data underpinning this update has not been reviewed or audited by external auditors. ADvTECH plans to release its interim results on the JSE Stock Exchange News Service on or about Monday, 25 August 2025.

Merafe Resources Limited (MRF) -0.83%

Merafe reported a challenging H1 2025, with ferrochrome production down 27% to 112kt and revenue declining 47% to R2.52 billion, reflecting persistent headwinds including high energy costs and intensified Chinese competition. Ferrochrome sales volumes fell 55% to 76kt, while chrome ore sales dropped 14%, partially offset by a 9% rise in PGMs sales to 7,112oz. EBITDA halved to R500 million, and headline earnings per share decreased 55% to 12.6 cents. Basic EPS declined 68% to 9.3 cents. Total recordable injury frequency rate improved 35% to 1.50, with no fatalities reported. Operating cash flow was negative R159 million, and cash reserves fell 36% to R1.14 billion. The board declared a reduced interim dividend of 4 cents per share (June 2024: 20 cents), reflecting market pressures. Net asset value increased slightly to R4.91 billion.

Weaver Fintech Limited(WVR) +11.26%

Weaver Fintech delivered a strong interim performance, reporting a 48% increase in profit before tax to R370 million, driven by aggressive customer growth to 3.7 million and a 29% rise in revenue. The fintech segment contributed 98% of profits, with PBT up 46.2%. Retail sales rose 12.1%, supported by robust customer collections growing 47.1% to R7.7 billion. Earnings per share and headline earnings per share both increased by 45% to 285.5 cents. The group declared a 47% higher interim dividend of 140.0 cents per share. Weaver Fintech maintains a strong liquidity position, with R2.1 billion in cash and unutilised facilities. This performance underscores continued momentum across the group, positioning Weaver well for future growth.

CoreWeave Inc. (CRWV) +6.42%

CoreWeave reported Q2 revenue of $1.21 billion, surpassing estimates of $1.08 billion, driven by strong demand for AI cloud services and Nvidia-backed chips. The company now operates 33 AI data centres across the US and Europe, benefiting from rapid AI adoption. Revenue backlog rose to $30.1 billion as of June 30, up from $25.9 billion in March. However, operating expenses surged to $1.19 billion, from $317.7 million the prior year, resulting in a net loss of $290.5 million, wider than analysts’ expectations of $190.6 million. CoreWeave highlighted rising demand for AI inference using chain-of-thought reasoning. The company raised its full-year revenue guidance to $5.15–5.35 billion, up from $4.9–5.1 billion, signalling confidence in continued growth despite the loss and increased costs.

Commonwealth Bank of Australia (CBA) +0.11%

Commonwealth Bank delivered record full-year cash earnings of A$10.25 billion, slightly above consensus estimates and up from A$9.84 billion last year. The bank declared a final dividend of A$2.60 per share, contributing to a full-year payout of A$4.85, the highest ever and ahead of forecasts. CBA reported robust home loan and business lending growth of 6.1% and 12.2%, respectively, outpacing system averages. Business lending cash profit rose 8% to A$4.1 billion, reflecting successful market share gains. While 85% of customers remain current on mortgage repayments, loans overdue by over 90 days increased marginally to 0.70%, the highest since 2018, partly due to ongoing cost-of-living pressures. The bank maintains prudent balance sheet settings amid global economic uncertainty and heightened competition.

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