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CoreWeave: Ride Higher Until Lock-Up Expiration

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  • CoreWeave rebounded sharply post-IPO, alleviating initial fears about debt and customer concentration with strong Q1 results and surging AI demand.
  • The AI hyperscaler has robust adjusted EBITDA supporting the company’s ability to handle large debt loads, but capital needs remain high.
  • A looming lock-up expiration, limited public float, and significant stock options/warrants could trigger heavy selling pressure in late September.
  • At nearly $190, I’m tepidly bullish but cautious given the stretched valuation, rising debt, and potential dilution from upcoming share unlocks.
CoreWeave, Inc. (NASDAQ:CRWV) had a disappointing IPO, but the stock action over the last month has made up for the bad start. The stock of the AI hyperscaler is now up 365% from the IPO price. My investment thesis is tepidly Bullish with CoreWeave trading up at nearly $184, knowing the lock-up expiration will likely take the stock down.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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