Buying competitively positioned companies after a fall in their share price can be very profitable. This can provide patient investors a golden opportunity to scoop up shares at cheaper prices before more growth in the business sends the stock higher.
CoreWeave's revenue growth is explosive, but capex and debt outpace cash generation, raising financing and execution risks. The company has a massive $30B backlog and strong demand from top-tier AI/cloud customers, supporting long-term growth potential. Improving cost of capital and potential for high free cash flow margins could drive significant upside if execution is strong.
CoreWeave, Inc.'s explosive revenue growth is impressive, but heavy capital spending and rising debt raise concerns about the sustainability of its business model. The company's reliance on long-term contracts and a single supplier (Nvidia) makes it vulnerable to technological shifts and market changes. Recent M&A activity, expensive debt issuances, and slowing sequential growth have introduced...
CRWV's IPO lock-up expiry and FQ2'25 bottom-line miss have triggered the much needed correction from June 2025 heights, as it finally nears our fair value estimates. Thanks to the clarity from the new customer wins, the growing multi-year backlog, and the intense capex, we believe that the management is likely to deliver the ambitious growth targets. For now, CRWV's lumpy profit margin performa...
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