Don't Get Burned - CoreWeave's Glory Days Are Numbered

(10min)

Summary

  • CoreWeave's stock surge (+318% post-IPO) appears disconnected from sustainable business expansion, signaling potential bubble territory despite impressive Q1 revenue growth and backlog.
  • Its initial time-to-market advantage is likely temporary, and moving up the stack requires more debt, threatening the model as demand matures and competition rises.
  • Customer concentration risk is high, with Microsoft and Nvidia comprising 77% of the backlog, and long-term contract sustainability is questionable as hardware rapidly depreciates.
  • Despite revenue growth, net losses widened significantly ($315M Q1), and escalating interest expenses on high-cost debt (11.8%) highlight sensitivity to borrowing costs.
  • The current high valuation (FY28 P/E > 43x) seems unjustified given depreciating assets, rising competition, and risks to long-term commitments, making EPS consensus vulnerable.

Концепция хайпа вокруг чипа AI, GPU. Красные микрочипы с искусственным интеллектом, напечатанные на падающем с производственной линии. Формат

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My Thesis on Coreweave

CoreWeave, Inc. (NASDAQ:CRWV) is a $72 billion market cap GPU/CPU compute provider, which competes directly with large hyperscalers such as Amazon (AMZN), Google (GOOG), and Microsoft (

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This article was written by

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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