Buy CoreWeave's 'Code Red' Moment

Uttam Dey4.89K FollowersFollow5ShareSavePlay(13min)CommentsSummaryCoreWeave, Inc. endures a turbulent quarter but retains a Strong Buy rating due to intact AI tailwinds and positive forward catalysts.CRWV operational setbacks, including delayed data center buildouts and a $200M revenue shortfall, have pushed CY25 revenue guidance down to ~$5.1B.Despite skepticism, CoreWeave trades at a depressed ~5x CY26 revenue multiple, with a $55B backlog and 135% projected revenue growth for CY26 paving the way for >26% upside.Execution risks persist, notably high debt and thin operating margins, but backlog expansion and stable gross margins underpin the bullish thesis for CRWV stock. cagkansayin/iStock via Getty Images Investment Thesis CoreWeave, Inc. (CRWV) and its shareholders (including me) had to endure a nightmare quarter so far with concerns about the AI bubble as well as operational flare-ups endogenous to the NJ-based neocloud hyperscaler surfacingThis article was written byUttam Dey4.89K FollowersFollowUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRWV 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. 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.Recommended For You