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Back in July, I covered CoreWeave, Inc. (CRWV) and argued that the selloff was a rate scare without an underlying business problem, and that the crowd would find its way back to the
CoreWeave's Interest Bill Is Nearly 4x Operating Income - That's Not The Big Threat
Summary
- CoreWeave, Inc. retains my Strong Buy rating, as Q2 revealed a step-change in adjusted operating margin from 1% to 5%.
- CRWV’s forward guidance implies a massive Q4 ramp, with up to 60% of full-year adjusted operating income expected in that quarter.
- Weighted-average cost of debt fell by 300 basis points despite a hawkish Fed, signaling improved lender confidence and robust capital access.
- Bear risks center on surging interest expense and leverage, but margin ramp and contract durability—such as 2029 A100 GPU deals—support the bullish thesis.
Rick is a Wall Street Journal best-selling author and financial writer specializing in stocks and options trading. He's recognized as a top 1% financial expert and blogger on TipRanks, and his work, in both written and video form, has appeared in Good Morning America, Forbes, Yahoo Finance, MSN, Business Insider, InvestorPlace, Benzinga, SoFi, Barchart, Thrive Global, and many more. Journalists and editors can find his verified credentials on MuckRack.His passion is business, and he works tirelessly to make complex investing ideas easy to understand, whether on his YouTube channel, in his books, or across his published work.Rick started his career young. In 2004, he founded a web marketing agency that was acquired in 2007. He and his partner then became pioneers in the telecom industry, offering a business phone service that worked from anywhere. The company grew rapidly through innovation and strategic acquisitions before being sold in 2014 for a seven-figure exit.Between 2009 and 2015, Rick served on the board of directors of GVCCU, where he gained inside experience in the mortgage and lending business.In 2018, he wrote The Financially Independent Millennial to share his story of reaching financial independence at age 35 despite not learning about money growing up. His books are written to be approachable and often highlight the lessons he wishes he could have told his younger self.Rick later co-authored Success Mindsets, which became a Wall Street Journal bestseller on November 13, 2021.When he's not analyzing markets, Rick is an enthusiast of fast cars, technology, and good food.
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