$CoreWeave, Inc.(CRWV)$ I've been reading everything I can on the debt and financing concerns, and I think the market may be throwing the baby out with the bathwater here. Truist still has a Buy with a $165 target, and they're pointing to something that seems to be getting overlooked: a huge backlog, real operating scale, and customer prepayments on roughly 70% of recent deals. That last part matters because upfront customer money means less dependence on outside financing.
Does CRWV have debt? Absolutely. Is the capital structure something to watch closely? Absolutely. But there's a big difference between being highly leveraged and having a failing business. Jensen Huang says CRWV's cost of capital is actually decreasing, Cantor calls this one of the best entry opportunities, and now Truist is pushing back on the financing panic.
I'm not pretending the risk disappeared. I'm saying the bear case has gotten way too one-sided. If CRWV proves the backlog converts to revenue and cash, and financing holds up, people selling in the $60s will regret it.
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