IB Net Payout Yields Model

Invest like me - only at Covestor.com

CoreWeave: Focus On Prospects, Not Growing Pains

By -

Update - April 9, 2026

CoreWeave could have a backlog approaching $90 billion now after signing a new $21 billion deal with Meta Platforms. The neocloud guided to Q1'26 revenue of up to $2 billion, so the backlog starting point is $85 billion plus what additional unannounced deals contribute to the backlog. 

-CoreWeave shares rose 7% in premarket trading Thursday after the company announced an expanded long-term agreement with Meta Platforms (META) to provide AI cloud capacity through December 2032, valued at about $21B.

-The deal builds on an existing partnership and will support Meta’s AI development, with the company using CoreWeave’s platform to scale inference workloads.

-The two firms first partnered last year, when Meta committed up to $14.2B through 2031, with an option to expand the agreement through 2032.



Original article posted on March 2

  • CoreWeave reported strong revenue growth but missed margin and income targets, leading to a sharp stock selloff.
  • The AI cloud company is experiencing significant growing pains as it rapidly scales to meet hyperscaler demand, adding ~260 MW of new power in Q4.
  • The market is concerned about low margins and high-interest expenses from substantial borrowing to fund AI GPU data center expansion.
  • I remain ultra bullish on CRWV at $80, viewing the valuation as attractive relative to the FY27 ARR exit rate.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »
CoreWeave, Inc. (CRWV) just reported a quarter highlighting the strong prospects of the business, yet the market sold off the stock. The AI cloud provider is still running into growing pains, and the market isn't very accommodating these days. My investment thesis remains ultra bullish on the stock on this dip below $80, a valuation nearly equal to the forecasted FY27 ARR exit rate.


Read the full article on Seeking Alpha. 

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

Comments

Post a Comment

Popular posts from this blog

Stat of the Day: VXO hits 45 again

By -
Not hardly a week removed from hitting 45 on 9/18/08 and the market is back to this extreme level. Usually hitting the 40 level has historically been a huge buy signal for at least the next 4-6 months. Below are the times that 40 has been hit and only 2 times did it exceed 45 in the prior 20+ years until this month. Guess time will tell if this one leads to a huge rally. Date High 10/19/1987 152.48 8/24/1990 40.01 10/27/1997 40.04 8/27/1998 41.46 4/14/2000 41.53 3/22/2001 41.99 9/17/2001 47.7 7/11/2002 41.64 9/18/2008 45.81
Read more

Nextdoor: Next Step Up

By -
Image
Update - Feb. 28, 2025 Nextdoor reported another strong quarter.  Q4 Revenue of $65.23M (+17.4% Y/Y)  beats by $2.11M . Adjusted EBITDA was $3.0 million, compared to a $14.0 million loss in the year-ago period, reflecting 30 percentage points of year-over-year margin improvement. The social media company guided to weak Q1 results due to going full speed ahead with the NEXT UI updates. This is great news for  investors, but the stock is down some 30% due to the markets short-term focus.  The stock trades at near cash value of $427 million.  Originally posted on Nov. 8 Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Nextdoor has achieved a significant turnaround under the return of founding CEO Nirav Tolia, with 17% revenue growth and record WAUs. The company nearly eliminated losses, reporting a Q3 adjusted EBITDA loss of just $1 million, and expects to be cas...
Read more

Snap: Exclusive Engagement Isn't Enough

By -
New report shows Snap has an exclusive user base. Snap must prove the business model though plenty of revenue upside exists with monetizing existing user base. Valuation is extremely stretched despite the opportunity to grow revenues due to unconstrained operating expenses. A new report backs the thesis that  Snap  ( SNAP ) has compelling user engagement that remains sticky. Unfortunately, user engagement is only one part of an investable business model that  my research  has questioned since the IPO. Read the full article on Seeking Alpha.  Disclosure: Long TWTR. Please review the disclaimer page for more details. 
Read more