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Title: CoreWeave's Stock Surge: Is It Real, or Just AI Hype?
Alright, let's talk about CoreWeave. Citi's pumping up the stock again, huh? Saying it's a "buy" and jacking up the price target to $192. Upside of 52%, they claim. All thanks to "rising artificial demand." Give me a break. Buy this AI cloud stock ahead of earnings, says Citi.
The AI Gravy Train
"One of the larger AI beneficiaries." That's what Citi's analyst, Tyler Radke, is calling CoreWeave. Of course, they are. Everyone's an "AI beneficiary" these days. Slap the "AI" label on anything, and suddenly it's worth ten times more. It's the 2025 version of the dot-com bubble, I swear.
And the backlog growth? Eighty-five percent quarter-over-quarter? Seriously? They expect us to believe this nonsense, and honestly...
Okay, fine, maybe there's something there. They signed deals with Nvidia, Meta, and even got an OpenAI expansion. But let's be real—how many of these deals are just hot air and promises? How many of these companies are actually going to use all that compute power they're supposedly buying? I'm seeing a lot of press releases and not a lot of actual revenue.
Diversification... Or Desperation?
Radke says their "concerns around customer concentration are waning." Translation: they're finally realizing that relying too much on Microsoft and OpenAI is a terrible idea. Now Meta and Nvidia are supposedly "backstopping" capacity intended for startups. Backstopping? What the hell does that even mean? It sounds like a fancy way of saying "we're trying to find someone to pay for all this extra hardware we bought."
And these five-to-six-year contracts? That sounds great on paper, but in the tech world, five years is an eternity. Who even knows what the AI landscape will look like in 2030? What if some new technology comes along and makes CoreWeave's infrastructure obsolete? These contracts could become albatrosses around their necks.
Also, AMZN results? What do they even have to do with this? Is that a typo? Am I missing something here?
Then again, maybe I'm the crazy one here. Maybe I'm just too cynical. But I've seen this movie before. Hype, inflated valuations, and then… boom.
The Profitability Mirage
"Significant profitability improvements" by the latter part of 2026. That's what they're promising. That's what they always promise. But how? What's the actual plan? Where's the concrete strategy? All I see is vague talk about "strong AI demand" and "noncancellable contracts."
CoreWeave went public in March and the stock has surged 216%. 216 PERCENT! That's insane. It's completely detached from reality. It's built on nothing but hope and hype. And the worst part? People are actually buying it.
This Smells Like a Pump and Dump
I'm calling it now: this is going to end badly. CoreWeave might be riding the AI wave right now, but waves crash. And when this one does, a lot of people are going to get hurt. Especially the ones who bought into the hype. Just remember I told you so.