CoreWeave (NASDAQ: CRWV):
Pros
Explosive revenue growth
-Q1 2025 revenue surged 420% year-over-year to $981.6 million, up from $188.7 million.
-Consensus expects revenue could double in 2025 and reach $16 billion by 2027.
High adjusted EBITDA margins
-Adjusted EBITDA margin around 62% in Q1 and ~64% for 2024.
Strategic customer contracts
-$11.9 b OpenAI deal and partnership with Google Cloud to support OpenAI workloads.
-$7 b lease agreement with Applied Digital over 15 years.
Backed by top-tier capital providers
-Investors include Nvidia, Microsoft, Blackstone, Magnetar, Fidelity.
-IPO raised $1.5 b even after scaling down, plus interest in refinancing $1.5 b debt.
Market leadership in GPU cloud
-Positioned as a “neocloud” AI infrastructure powerhouse, offering specialized high-performance GPU services to hyperscalers.
Cons
-Massive capital intensity & debt
-Carried ~$8 b in debt as of end-2024; raising more to refinance high-yield credit.
-Depreciation and interest charges weigh on GAAP profits
GAAP losses remain significant
-Q1 net loss of $314 million due to high depreciation/interest; GAAP net loss margin ~32%.
-Non-cash adjusted figures hide underlying capital burn.
Customer concentration risk
-Microsoft accounted for ~62% of 2024 revenue; OpenAI and Google help diversify, but client dependency remains.
IPO headwinds & pricing struggles
-IPO priced at\$40 (reduced from $47–55).
-Seen as largest tech IPO since 2021, but faced investor concerns over sustainability.
Valuation and competition concerns
-Stock is up ~250–300% since IPO—possible bubble risk.
-Faces competition from Big Tech hyperscalers and other AI compute providers
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Pros
Explosive revenue growth
-Q1 2025 revenue surged 420% year-over-year to $981.6 million, up from $188.7 million.
-Consensus expects revenue could double in 2025 and reach $16 billion by 2027.
High adjusted EBITDA margins
-Adjusted EBITDA margin around 62% in Q1 and ~64% for 2024.
Strategic customer contracts
-$11.9 b OpenAI deal and partnership with Google Cloud to support OpenAI workloads.
-$7 b lease agreement with Applied Digital over 15 years.
Backed by top-tier capital providers
-Investors include Nvidia, Microsoft, Blackstone, Magnetar, Fidelity.
-IPO raised $1.5 b even after scaling down, plus interest in refinancing $1.5 b debt.
Market leadership in GPU cloud
-Positioned as a “neocloud” AI infrastructure powerhouse, offering specialized high-performance GPU services to hyperscalers.
Cons
-Massive capital intensity & debt
-Carried ~$8 b in debt as of end-2024; raising more to refinance high-yield credit.
-Depreciation and interest charges weigh on GAAP profits
GAAP losses remain significant
-Q1 net loss of $314 million due to high depreciation/interest; GAAP net loss margin ~32%.
-Non-cash adjusted figures hide underlying capital burn.
Customer concentration risk
-Microsoft accounted for ~62% of 2024 revenue; OpenAI and Google help diversify, but client dependency remains.
IPO headwinds & pricing struggles
-IPO priced at\$40 (reduced from $47–55).
-Seen as largest tech IPO since 2021, but faced investor concerns over sustainability.
Valuation and competition concerns
-Stock is up ~250–300% since IPO—possible bubble risk.
-Faces competition from Big Tech hyperscalers and other AI compute providers
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.