Is CoreWeave Stock in Trouble?

Core Viewpoint - CoreWeave (NASDAQ: CRWV) serves as a proxy for investing in artificial intelligence (AI) by renting out computing power and providing access to Nvidia's latest chips, which can benefit from bullish market sentiment on AI growth [1] Financial Performance - CoreWeave's stock price has recently declined over 40%, closing at $71.65, significantly lower than its 52-week high of $187.00, indicating investor concerns about AI spending [2] - The company carries a substantial debt load of approximately $14 billion, nearly three times its current assets of $4.7 billion, raising concerns about its financial health [3] - Interest expenses for the quarter reached $310.6 million, approximately six times its operating profit of $51.9 million, severely impacting profitability [4] Management Perspective - Management argues that the high debt is justifiable as it is tied to success-based capital expenditures, with new infrastructure being acquired in line with new consumer contracts [5] Growth Metrics - Despite a slowdown in growth, CoreWeave reported impressive revenue of $1.4 billion for the most recent quarter, more than double the $583.9 million from the same period a year ago, and has tripled its revenue over the past three quarters [6][7]