CoreWeave Is Soaring Again. Time to Buy?

Core Points - CoreWeave's shares surged after announcing a new order with Meta Platforms, committing up to $14.2 billion through December 14, 2031, with potential expansion into 2032 [1][3][7] - The agreement allows Meta to access CoreWeave's reserved AI compute capacity, indicating a long-term partnership that enhances revenue visibility and diversifies CoreWeave's customer base [3][4] - This announcement follows a recent expansion of CoreWeave's agreement with OpenAI, which increased commitments by up to $6.5 billion, further solidifying CoreWeave's position in the AI cloud computing market [4][5] Business Outlook - The new order strengthens CoreWeave's backlog and diversifies demand, but the stock appears to be priced for perfection, given its market capitalization of $68 billion and ongoing losses [5][6] - Future performance will depend on the speed of capacity ramps and market demand, which are unpredictable factors in a capital-intensive industry [6] - The recent stock price increase suggests a cautious approach may be warranted, with potential for better entry points in the future [6][7]