Investing, that most unoriginal of arts, thrives on the illusion of novelty. One might as well follow the crowd to the edge of the cliff as to follow the latest quarterly confessions of financial shepherds. Yet here we are, peering through the veil of 13-F filings, hoping to divine wisdom from the portfolios of the pros.
Consider CoreWeave (CRWV), that neocloud upstart whose IPO was less a launch than a fireworks display-bright, noisy, and destined to leave a smoldering crater. Its admirers include the likes of Cathie Wood, Ken Griffin, and Nvidia, a triumvirate as diverse in strategy as a fox, a bear, and a mirror. Nvidia, that paragon of self-interest, holds 24.3 million shares while simultaneously selling the very GPUs that CoreWeave rents out. A marriage of convenience, no doubt.
Ark Invest, ever the apostle of disruption, clings to 340,000 shares like a Victorian poet to a metaphor. Citadel, that arch-architect of market asymmetries, dabbles in puts and calls as if hedging a bet on the stock market’s sanity. Yet all three, for all their grandeur, are but passengers on the same runaway train.
Why CoreWeave is a Popular Choice
For those who mistake volatility for virtue, CoreWeave offers a feast of contradictions. It is a pure-play AI stock, a data-center landlord, and a debt-laden phoenix, all rolled into one. The company’s Q2 revenue-$1.21 billion, a sum that would make a monarch blush-comes at the cost of $11 billion in debt, a gilded noose that swells to $1 billion in interest payments. A most curious alchemy: growth that demands ever more alchemists.
Is CoreWeave a Buy?
CoreWeave’s public debut was less a birth than a resurrection from the ashes of an undersubscribed IPO. It clawed its way from $40 to $187, a trajectory as unsustainable as a soufflé in a hurricane. For the true believer in AI, it is a stock of sublime potential and existential risk, a neocloud that might rain gold or hailstones.
The company’s sole competitor, Nebius, is but a shadow in a hall of mirrors. Yet even this advantage is undermined by the fragility of its model: debt-fueled expansion, GPU depreciation that outpaces Moore’s Law, and a reliance on Nvidia’s largesse. The recent $6.3 billion pact with its supplier is less a lifeline than a leash, a contract to backstop unsold capacity until 2032. A most prudent arrangement, if one’s definition of “prudent” includes betting the farm on a technology that may render itself obsolete by breakfast.
If the AI boom is but a fleeting infatuation, CoreWeave will be the first to crumble. But if it endures, the company may yet prove a phoenix-though it will likely burn the forest to ashes in its rebirth. The stock, a rollercoaster for the faint-hearted, is not for the faint of mind. Nor for the faint of wallet. 🎭
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2025-09-25 11:19