CoreWeave: Ride Higher Until Lock-Up Expiration

(8min)

Summary

  • CoreWeave rebounded sharply post-IPO, alleviating initial fears about debt and customer concentration with strong Q1 results and surging AI demand.
  • The AI hyperscaler has robust adjusted EBITDA supporting the company’s ability to handle large debt loads, but capital needs remain high.
  • A looming lock-up expiration, limited public float, and significant stock options/warrants could trigger heavy selling pressure in late September.
  • At nearly $190, I’m tepidly bullish but cautious given the stretched valuation, rising debt, and potential dilution from upcoming share unlocks.
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AI Server Racks in Modern Data Center

pingingz

CoreWeave, Inc. (NASDAQ:CRWV) had a disappointing IPO, but the stock action over the last month has made up for the bad start. The stock of the AI hyperscaler is now up 365% from the IPO price. My investment thesis is tepidly Bullish

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Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager.

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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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