Why I'm Still Not Buying CoreWeave Stock

Core Viewpoint - CoreWeave, an AI cloud infrastructure provider, has shown significant growth but is viewed as a speculative investment rather than a stable long-term opportunity due to its high valuation and unguaranteed profitability [2][11][14] Financial Performance - In Q4 2025, CoreWeave's revenue increased by 110% year-over-year to approximately $1.6 billion, with total revenue for the year soaring 168% to $5.1 billion [5] - Management projects 2026 revenue between $12 billion and $13 billion, indicating a growth rate of 144% at the midpoint, supported by a revenue backlog of $66.8 billion, a 342% increase from the previous year [6] Capital Expenditures and Losses - CoreWeave is facing high capital expenditures, expected to double in 2026 to between $30 billion and $35 billion, while projected revenue for the year is around $12.5 billion [8] - The company reported a net loss of $452 million in Q4, with interest expenses more than doubling year-over-year to $388 million, indicating financial strain [7][9] Valuation Concerns - With a market capitalization of $45 billion, CoreWeave's valuation reflects a premium for a company that is heavily indebted and currently unprofitable, with a revenue multiple of approximately 3.5 times the 2026 forecast [11] - The current stock price assumes flawless execution in building infrastructure and converting backlog into revenue, alongside sustained pricing power in AI computing [12]