To The Moon

$CoreWeave, Inc.(CRWV)$  I've been in the stock since just after the IPO. The knocks against the company were: 1. They depreciate chips over 6 years when they become obsolete faster, but it turns out the chips have a longer life and deliver high margins for longer. 2. They had a small customer base, but they've grown it significantly in 9 months. 3. Their cost of debt is high, yet they've been continually lowering it. 4. They were seen as just a stack rental company, but they've added many value-added features, and their proprietary software running the stack shows strong results. 5. They are highly leveraged. Well, that one is true, but they only borrow against signed contracts.

So over the last 9 months, they've improved on every metric and addressed the top concerns. Analysts' average ratings have gone from the low $60s per share to over $120 per share. The stock has tripled in 9 months. However, since it hasn't shifted from losses to making billions every quarter, some—like Jim Cramer—ask, "Where's the profitability?" In two years, when growth slows a bit, capital spending falls, and contract margins kick in, cash flow will pour in. Then critics will complain about valuation because the stock price will be much higher by then. Sound familiar? Think Tesla, Amazon, Facebook, Palantir, Google, etc. And let's face it, building out AI is MUCH more expensive than software businesses. So tons of upfront capital leads to a strong position and profit later. Will CRWV be successful? Heck if I know, but I think it has a good shot.