CoreWeave: Enough Is Enough

Bay Area Ideas3.58K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryCoreWeave is upgraded to a strong buy after a 40%+ stock decline, citing overblown concerns and a compelling risk/reward setup.CRWV faces near-term data center delays and profitability pressures, but demand remains exceptionally robust, as evidenced by a $55.6B revenue backlog.Despite lowering FY revenue and operating income guidance, long-term growth prospects remain intact, with supply—not demand—constraining results.Valuation has collapsed to a forward P/S of 6.75, creating a significant opportunity versus peers and prior levels. onurdongel/iStock via Getty Images In late September, I initiated coverage on CoreWeave, Inc. (CRWV) with a buy rating. Demand for infrastructure was determined to be robust, the valuation pullback was attractive, and perhaps most importantly, the company's agreement with Nvidia (This article was written byBay Area Ideas3.58K FollowersFollowI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America!Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRWV, NVDA 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. Analyst's family has a beneficial long position in the shares of NVDA.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.