Buying Opportunity on Coreweave Following Dip

2 months ago

Parkev Tatevosian, CFA

"Now, this wasn't the case the last time I evaluated the company on October 22nd where I told investors and informed investors that the valuation was too expensive for me to rate this business as a buy. But, uh, if you were interested in buying this stock and you were waiting for a dip, waiting for an opportunity, I think this is that opportunity. I think the price decline following this earnings release and the subsequent increase in the backlog and revenue and expectations for growth in the next coming years make this an interesting investment. Now I would only recommend this for those investors that have a high risk tolerance. This is a high-risk high-reward type investment. This is the type of investment that could significantly add to your wealth in a short amount of time, but it's also one of those investments that can crash by 30, 40, 60% and nobody would be surprised. So, make sure your ability to tolerate risk is above average, well above average in order to jump into this investment."

The speaker believes that the recent dip in Coreweave's stock presents a buying opportunity, noting its intrinsic value and cheaper valuation on a forward price-to-OCF basis. Although there is high risk involved due to potential volatility and heavy capital expenditure needs, he suggests that investors with a high risk tolerance may find significant upside in an investment that can quickly add value.

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