CoreWeave's Story Just Changed

Yiannis Zourmpanos15.43K FollowersFollow5ShareSavePlay(8min)CommentsSummaryCoreWeave stock surged ~50% since last coverage, driven by $8.5B financing and $21B Meta contract validation.FY2026 revenue guidance of $12B–$13B largely supported by pre-allocated capacity and $66.8B contracted backlog visibility.Forward EV/sales compresses from ~7x in 2026 to ~2.6x in 2027, reflecting rapid revenue scaling expectations.Capex remains elevated at $30B+, delaying free cash flow despite strong mid-20% contribution margins on mature contracts.Customer diversification improved with Meta, Anthropic, and Jane Street, reducing reliance on prior concentrated revenue sources. tiero/iStock via Getty Images Investment Thesis CoreWeave, Inc.’s (CRWV) story has shifted in a way that the market is only beginning to recognize. Since my last coverage, CRWV is up ~50%, materially outperforming the broader market, but this hasn’t been a typical AI-driven move. Rather, it marksThis article was written byYiannis Zourmpanos15.43K FollowersFollowHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degrees from U.K. business schools. Investment Style: Spotting high-potential winners before they break out, focusing on asymmetric opportunities (with at least upside potential of 3-5X outweighing the downside risk). By leveraging market inefficiencies and contrarian insights, we seek to maximize long-term compounding while protecting against capital impairment.Risk management is paramount—we seek a strong margin of safety to protect against capital impairment while maximizing long-term compounding. Our 2-3 year investment horizon allows us to ride out volatility, ensuring that patience, discipline, and intelligent capital allocation drive outsized returns over time.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. 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.