Sell Your CoreWeave
Summary
- CoreWeave, Inc. stock is up 300% since the IPO; all positive catalysts are priced in, so I recommend selling your entire position now.
- If you want to stay exposed, consider selling covered calls or, better yet, swapping into Core Scientific, Inc. for a merger arb opportunity.
- The CORZ/CRWV deal offers a 78% IRR with minimal deal risk, making it a superior alternative to holding CRWV stock.
- While the deal could break, I see more upside risk of a price bump or bidding war; CORZ remains a Strong Buy today.
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Chris DeMuth Jr., is the founder of Rangeley Capital.
Chris runs the investing group Sifting the World, in which he shares his best ideas, deep research, extensive resources and real time updates as investments play out. The group contains an experienced community that shares specialized knowledge when members have local knowledge of opportunities under discussion. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of CORZ either through stock ownership, options, or other derivatives. 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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