Okay, so CoreWeave (CRWV +1.14%). They’re building data centers, which, fine. Everybody’s building data centers. It’s the new thing. But they’re doing it for artificial intelligence. AI! Like that’s some magic bullet. And they’re down 60% from their high. Sixty percent! It’s like they want to lose money. It’s just… inconsiderate, frankly. I mean, you announce all these deals, you’re growing at a triple-digit pace – what’s the point if the stock is circling the drain? It’s a basic contract, people. Growth, then, you know, not losing money. Is that too much to ask?
They’re not reinventing anything, which, okay, I appreciate the honesty. They’re just slapping an “AI-first” label on the same old cloud computing model. It’s like calling a slightly burnt toast “artisan.” It’s still toast! And they’re filling these data centers with Nvidia chips. Nvidia! Those things are expensive. I saw a commercial for one of those Nvidia cards. It cost more than my first car. More than my first car! And they expect me to believe this is sustainable?
The problem, as I see it, is the spending. They’re hemorrhaging cash. Building, building, building. Like a squirrel preparing for a winter that may never come. But the other cloud guys – Amazon, Google – they had other stuff going on. They were making money while building. CoreWeave? Nada. Just relying on external funding. It’s like building a house on a credit card. What could possibly go wrong?
And this Nvidia thing…it’s a yearly cycle! They install all this fancy equipment, and in a year, it’s obsolete. Obsolete! It’s like buying a new phone. You barely get it out of the box before they announce the next model. It’s a racket, I tell you. A complete racket. And these GPUs, they burn out. One to three years. So, they’re constantly replacing them. Constant! It’s a capital expenditure nightmare. They’re still trying to figure out pricing? Seriously? It’s basic math!
Okay, the growth is impressive, I’ll give them that. Revenue up 110%? Fine. A $70 billion backlog? Okay, that’s…something. But 42% of that backlog converting to revenue in two years? That’s an assumption. A hopeful assumption. It’s like saying you’re going to win the lottery. It could happen, but don’t bet your mortgage on it. And if the capital expenditures stay below profits? A big “if.” A huge “if.” The market is skeptical, and rightfully so. The share price is telling you something, people. Listen to the share price!
I’m still not convinced. It’s just…too risky. Too many variables. Too much reliance on things that might happen. If I were to invest, it would be a tiny position. A really tiny position. Like, enough to cover the brokerage fees. Just in case. Because let’s be honest, this whole thing feels like a house of cards. A very expensive house of cards. And I’m not in the business of holding up houses of cards. It’s just…inconsiderate to everyone involved.
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2026-03-13 21:53