Coreweave Buy on the Dip with Attractive Risk/Reward
"So, to answer the question I posed in the headline, is this price drop a buying opportunity? I think it is. I think Coreeave is an attractive risk versus reward opportunity but only for those investors with the highest risk tolerance. This is on the highest end of the risk spectrum of stocks you can buy. Coreweave is all the way on the right side. So it should only be considered for those investors with the highest risk tolerance that are looking for those high risk, highreward type situations, but at an attractive price. Right? So you're taking a chance, you're making a little bit of a speculative investment, but your investment has positive expected value. So on a riskadjusted basis, you're getting a good reward for taking this risk or you're getting a good potential reward for taking this risk."
The speaker argues that Coreweave, trading well below its intrinsic value, presents a buy opportunity on the dip for investors with a high risk tolerance. He emphasizes that, despite the inherent volatility and being among the riskiest stocks, the risk-adjusted potential reward makes it an attractive speculative play.
Buy CoreWeave at its Undervalued Price
"So Coree stock has been under pressure in recent weeks. Over the previous month, it's down about 50%. The market price is down to $7553. But I think that's an opportunity for investors. I calculated an intrinsic value per share of $121 for core stock. So you're able to buy this business at a significant undervaluation right now."
The speaker highlights that CoreWeave (CRWV) has experienced a steep decline, down about 50% in the past month, which presents a buying opportunity. He calculates an intrinsic value of $121 per share compared to the current market price and suggests that the undervalued condition, despite associated risks, can provide significant returns for those willing to play high risk.
CoreWeave Buy Recommendation Based on Intrinsic Valuation
"The intrinsic value per share I calculated for Core Weeave is $122 and the current market price after the big decrease over the previous month is $74. And so I will reiterate that I think this stock is a buy and I updated that recommendation today on November 17th. I do think this stock is a buy, but again it's only for those investors with a very high risk tolerance that are looking for those high-risk, highreward type situations."
The speaker calculates CoreWeave's intrinsic value at $122 per share compared to its current price of $74, presenting a strong buy call for investors with a high risk tolerance. The recommendation is based on the company's high revenue growth and anticipated continued demand for its AI cloud platform amid capacity expansion risks.
CoreWeave stock rated as a buy due to undervaluation and growth potential
"when you look at valuation, now I've shared with you the valuation on my proprietary DCF where I calculated an intrinsic value per share of 123 versus a current market price of 74 suggesting that this stock is undervalued at these prices. But if you go to fisc.ai, AI, which is my preferred data provider, and you look at Core Weave's forward price to operating cash flow, it's trading at a ridiculously cheap value at 6.4. But this valuation can be misleading because the large bulk of Core Weave's spending is going in capital expenditures, which is not included in operating cash flow. And so it's understandable why investors are shying away from coreweave stock. But I think overall the risk versus reward is worthwhile and I have core stock rated as a buy."
The analyst highlights CoreWeave's undervaluation, noting an intrinsic value of 123 versus a market price of 74 and an attractive forward operating cash flow multiple. Despite concerns regarding heavy capital expenditures and capacity limits, the recommendation is to buy, supported by strong contracted orders over the next 12 months that bolster revenue certainty.
Undervalued Trade Opportunity in CRWV
"Coreweave stock crashed by almost 40% since the start of November and is currently trading at $85 per share. While discounted cash flow models like Simply Wall Street's calculate its fair value to be around $420. That means it's 80% undervalued at its current price. Set another way, Cororeweave stock would have to go up by 400% just to hit its fair value today, making it a great stock to get rich without getting lucky."
The speaker presents a strong trade call on CRWV, highlighting its recent 40% price drop and comparing the current trading price of $85 to a DCF-derived fair value of about $420. He emphasizes the substantial undervaluation as a buying opportunity for investors aiming for long-term gains.
Caution on CRWV amid margin and burn concerns
"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.
Company Commentary on Cororeweave's Red Flags
"I would be shocked if this stock over the next 5 years is still trading for $85 per share. I'm not a short seller. Every time I talk about a stock negatively, I get comments like, 'Well, then why don't you short it, Daniel?' I'm just telling you that the fundamentals of this business are terrible and it's massively overvalued. This company has a $43 billion valuation, is trading at 10 times sales despite losing money, and all around, this company screams red flags to me."
The speaker provides a comprehensive commentary on Cororeweave, highlighting severe concerns including its overvaluation, deteriorating profitability, heavy debt burden, and insider selling. Although not a direct trade call, the analysis implies significant downside risk for the stock.
Buying Opportunity on Coreweave Following Dip
"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.
CoreWeave Struggles Post-Earnings Amid Data Center Delay Concerns
"All right, let's talk uh about Core Wee. This is certainly a top story for us on this uh Tuesday. Well, Coree, this is ticker CRWV. This is a stock that of course IPOed back in late March, but today not seeing a great day. Shares down as much as 17%. That's the most since August. This is after the company reported third quarter earnings, but they did talk about a data center delay, which they see could potentially be snagging or creating some sort of impact on its first quarter earnings. So, you did see JP Morgan coming in downgrading the stock to neutral from overweight. Analysts are still saying that supply constraints are okay over the short term but overall it seems as though this isn't the worst thing here for the company but you're definitely seeing their shares taking quite a bit of a beating today."
The commentary on CoreWeave (CRWV) outlines a challenging trading day with shares down 17% following Q3 earnings and a reported data center delay. The downgrade by JP Morgan and ongoing supply constraints indicate near-term headwinds as the market processes the impact on upcoming first quarter earnings.
CoreWeave Q4 Cautions Amid Contract Delays
"The next one is data center operator coreweave. So, we're kind of keeping on this AI theme. CRWV. Okay. Its shares have been down as much as 10%. They have a good breakfast. They lowered its annual revenue forecast. It suffered a delay from fulfilling a customer contract. Its CEO said, you know what, fourth quarter results are going to reflect it. But the client, you know, affected by it. He's agreed to adjust delivery schedules, so don't worry about it."
CoreWeave, an AI chip access provider that recently IPO'd, is facing short-term pressures with shares down 10% due to a lowered annual revenue forecast and contract fulfillment delays. The CEO's note on adjusting delivery schedules aims to reassure investors, though near-term earnings could reflect these setbacks.