Dear Diary,
Units of Patience Lost: 3. Hours Spent Scrutinizing CoreWeave’s Q2 Earnings: 7. Number of Times I Whispered “This is why I don’t trust startups with ‘Weave’ in their name”: 4.
CoreWeave (CRWV) has been a rollercoaster of a stock since its IPO. I’ll admit it-when it hit $187, I almost bought in, thinking, “Finally, I’ve cracked the AI gold rush!” But now? The shares have nosedived post-Q2 results, and I’m left wondering if this is a bargain or a bottomless pit. Let’s dissect this like a particularly dramatic breakup.
Revenue Surge? Yes. Debt? Also Yes, and Then Some
CoreWeave’s business model is as niche as my obsession with artisanal kombucha: it’s an AI infrastructure provider with a cozy relationship with Nvidia. But here’s the kicker-their Q2 revenue tripled to $1.21 billion, which sounds impressive until you realize they’re burning through $251 million in operating cash flow each quarter.
They’re also acquiring Core Scientific for $9 billion in stock, which is like buying a second home… in a country that doesn’t exist yet. The logic? “We need more power infrastructure.” Sure, darling. Because nothing says “financial stability” like spending $20 billion on capex and ending the quarter with $11.2 billion in debt.
The CoreWeave Conundrum
On the plus side, they’re the go-to for AI startups and have expansion deals with hyperscalers like OpenAI. But let’s not forget: they’re not Amazon or Microsoft. They’re a scrappy upstart with a $4.1 billion free cash flow black hole in six months.
Here’s my list of concerns:
1. Supply constraints (demand > supply-how original!).
2. Powered shells (data centers with grid access-apparently, these are harder to find than a decent cup of coffee in Manhattan).
3. Debt costs that still aren’t “cheap,” despite their recent refinancing shenanigans.
4. Profitability that feels as close as my New Year’s resolution to stop checking stock prices at 2 a.m.
Should You Buy the Dip?
Let’s be brutally honest: this stock is speculative. Like investing in a vegan donut shop in a steakhouse town. They’re growing like weeds, but the question is whether their cash-burning is justified.
As an investor, I’m torn. The AI infrastructure market is huge, but CoreWeave’s financials read like a cautionary tale. They’re playing the long game, but if they can’t monetize their hype, they’ll be the next footnote in a Wall Street gossip column.
My verdict? I’ll pass-for now. There are enough “weaves” in my life already (my hair, my socks, my increasingly tenuous grip on sanity). Maybe in six months, when their debt isn’t quite so… debtastic, I’ll reconsider. Until then, I’ll stick to safer bets and my therapist’s advice.
Invest wisely, and remember: even the sharpest investors sometimes need to take a step back and ask, “Is this a growth stock or a growth spurt?” 😬
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2025-08-17 11:47