Caution on CRWV amid margin and burn concerns

2 months ago

Host

"The bottom line, I'm bullish on Nebius. I'm cautious on Cororeweave. And I acknowledge Cororeweave has the higher risk and the higher reward. But that reward only matters if they survive long enough to reach it. And if you like Coreweave, just make sure you understand the risk because if they pull it off, the upside could be massive."

The speaker warns investors about Coreweave (CRWV), emphasizing its high risk due to collapsing margins, rising capex, and a lack of a sticky software moat. While Coreweave boasts impressive revenue numbers and a massive contracted backlog, its margin deterioration and high burn rate suggest significant operational vulnerabilities.

Related Stocks