Should I Buy Coreweave (CRWV)? Finance YouTuber Analysis

The YouTuber expresses high conviction in Coreweave, noting its close ties to Nvidia and Oracle. He believes the market is waiting for the next quarter to confirm that margins have bottomed out and are beginning to rise, which he expects will lead to a significant stock jump.

“It's the one that's really attached to to Oracle's move. So to me, Cororeweave Nebuse, there's also a reason why Nvidia invested in these businesses, works quite closely with these businesses.” — ▶ 09:00

The YouTuber states he will buy more shares of Coreweave if it drops below $100, as he previously sold shares at a higher price and believes it's a good opportunity to re-accumulate. He implies the company's fundamentals remain strong despite short-term price movements.

“But if we do drop a little bit lower then I will be picking up a little bit more shares. So basically the ones that I sold not that long ago at a higher price.” — ▶ 2:00

The YouTuber recommends Coreweave for investment, stating that Nvidia has poured billions into this hypergrowth cloud provider. Coreweave is described as completely loyal to Nvidia chips, bypassing traditional big tech players, making it a direct beneficiary of Nvidia's strategy to finance companies that buy, house, connect, and use their products.

“Finally, they poured billions into Coreweave and the Nebius Group. These are hyperrowth cloud providers completely loyal to Nvidia chips, bypassing the traditional big tech players entirely.” — ▶ Watch clip

The YouTuber expresses strong reservations about Coreweave, stating that it is not yet a profitable business and is essentially 'betting on a story.' Its negative cash flow and extremely high debt levels make it a high-risk investment that could lead to significant dilution, advising against it as a tactical trade.

“Coreweave isn't yet. That means you can love the company, but right now you aren't betting on a business. You're betting on a story.” — ▶ Watch clip

The analyst recommends Coreweave for investors seeking momentum, highlighting its strong year-to-date stock performance and its connection to significant AI spending. However, the business is capital-intensive, posing a risk if funding tightens or execution falters.

“If you want the fastest car, it is Coreweave.” — ▶ 10:05

The YouTuber advises avoiding Coreweave, stating it is built on hype, leverage, and infrastructure it does not control. They point to its negative net profit margin, extremely high negative levered free cash flow margin, and reliance on leased assets as major red flags, suggesting its revenue is fragile and unsustainable.

“Cororeweave is built on hype, leverage, and infrastructure it doesn't control.” — ▶ 09:54

The YouTuber is cautious on CoreWeave, highlighting its collapsed gross margins (from 20% to 2%), significant cash burn ($100 million loss this quarter with rising CapEx), and lack of a proprietary software moat, making it vulnerable to pricing pressure. While acknowledging its large backlog and partnerships, they view its business model as less durable and more exposed to risk compared to Nebius.

“The bottom line, I'm bullish on Nebius, I'm cautious on Coreweave, and I acknowledge Coreweave has the higher risk and the higher reward, but that reward only matters if they survive long enough to reach it.” — ▶ 12:00

The YouTuber is conditionally bullish on Coreweave, viewing it as a high-risk, high-reward opportunity. They acknowledge its significant backlog and early lead in AI infrastructure but emphasize that its collapsing margins and lack of a sustainable moat beyond GPU rentals make it a speculative play. The investment hinges on the company's ability to improve its financial efficiency and build a more defensible business model.

“If you're swinging for upside and you believe they'll tighten execution, then Coreweave could still pay off big.” — ▶ 8:30

The YouTuber views the recent 10% drop in Coreweave as a buying opportunity, despite dilution from an all-stock acquisition and a legal probe. He argues the acquisition of Core Scientific provides vertical integration, eliminating $10 billion in lease obligations and saving $500 million annually by 2027, strengthening Coreweave's long-term position. Additionally, Coreweave's launch of Nvidia's new Blackwell GPUs gives it a first-mover advantage in AI hardware.

“Coreweave is still one of the best positioned high-risk high-reward AI infrastructure plays in the market.” — ▶ Watch clip

The YouTuber identifies Coreweave as a specialized cloud provider for AI training, equipped with powerful GPUs and long-term contracts. He notes its partnership with Nvidia and growing demand for its services. He suggests a more cautious entry point if the stock breaks above $140, indicating a cleaner breakout from recent highs.

“And if you wanted to be a little bit more cautious on this, you'd be looking more at like the $140, which is a few dollars above where we are trading right now. And that would be a cleaner kind of breakout.” — ▶ 16:00

The YouTuber suggests Coreweave, like Oracle, faces significant weakness due to the debt they are taking on for data center buildouts, and that their profitability might not meet market expectations. He implies that their business model, relying on potentially unstable commitments, is riskier compared to companies with more secure demand.

“We've also seen a little bit of a sell-off across all AI stocks with Oracle as a whole. But I don't necessarily think that this is justified because I think that we live in this reality where Oracle and Coree and those types of companies can go belly up or maybe not belly up but see significant weakness from all of the debt they're taking on and maybe their data center buildouts are not going to be nearly as profitable as they think or they won't realize as the market was expecting them to.” — ▶ 23:00

The analyst views Coreweave as too risky to buy, citing concerns about its depreciation schedule for Nvidia chips, which may become obsolete faster than their six-year depreciation period. The company is also heavily reliant on debt to fund its infrastructure build-out, with cash from operations not covering capital expenditures, posing a significant risk if asset returns are not realized.

“This is also another company like Oracle that's not going to be able to fund its operations with the current business.” — ▶ Watch clip

The YouTuber advises avoiding Coreweave due to its outrageous current valuation and lack of financial history for fundamental analysis. While acknowledging its rapid growth, Nvidia backing, and aggressive infrastructure expansion plans, the absence of financials and a projected 52% downside by analysts make it too risky for investment at this time.

“The current stock valuation to me seems completely outrageous and it isn't a risk that I would be willing to take with my money today.” — ▶ 9:50