u/banaca4 · 38d ago1 prior · awaiting results
CoreWeave at ~$90: does the debt destroy the equity, or is the market underpricing compute scarcity?
CoreWeave is a leveraged bet on compute scarcity with attractive expected value (~$325/share terminal value, 29% annualized return) if it can sustain 15-20% operating margins and lenders continue financing GPU assets based on residual value. The key unknowns are whether customer diversification continues, margins expand, and GPU-backed financing spreads narrow.