CRWV Forensic Analysis

PART 1: TRADING EXECUTION

Trading Setup & Entry Strategy

Current Price: $88.30 Trend Status: BULLISH MOMENTUM (High Volatility)

This is a classic "High Velocity Growth" play. CRWV has more than doubled from its March 2025 IPO price of $40.00. While fundamentals show explosive growth (+134% YoY revenue), the valuation is rich, and insider supply is coming via 10b5-1 plans. We are BUYERS, but disciplined buyers. We do not chase at $88.30.

Strategy: Buy the Dip / Momentum Breakout

1. •Entry Zone 1 (Aggressive): $90.50 (Buy Stop). If price breaks above $90.00 resistance on volume, enter 30% position to catch the breakout to $100+.
2. •Entry Zone 2 (Conservative - Preferred): $82.50 - $84.00. This likely aligns with the 20-day moving average and previous consolidation support. Place limit orders here for 40% of size.
3. •Entry Zone 3 (Value/Support): $76.00. Major structural support. If it hits this, load the remaining 30%.

• •Stop Loss: $72.50 (Hard Stop). A close below this level invalidates the immediate bullish thesis and suggests a deeper correction towards $60.
• •Position Sizing: 3.5% of NAV (Risk-seeking profile allows higher allocation, but volatility requires width).
• •Take Profit: Trim 25% at $98.00, Trim 25% at $110.00, Trail remainder.
• •Timeframe: 2-6 Weeks (Swing).

---

PART 2: DETAILED RESEARCH

Executive Summary

Thesis: CoreWeave (CRWV) is the pure-play derivative on the AI Capex Cycle. Q3 2025 revenue grew 134% YoY to $1.36B, confirming that demand for specialized GPU compute remains insatiable. The company is successfully transitioning from pure infra to an AI platform via the Weights & Biases ($1B) acquisition. However, Customer Concentration (Microsoft = 67%) and a massive $14B Debt Load are critical risks. We are long the growth, but watching the credit spread.

Analysis Date: 2026-01-07

Recent Material Events (8-K Analysis)

• •November 2025 (Credit Facility): Expanded Revolving Credit Facility to $2.5B and extended maturity to 2029. Bullish: Provides liquidity to service debt and fund Capex.
• •October 2025 (Failed Merger): Terminated the Core Scientific merger. Bullish: While initially seen as a setback for power acquisition, avoiding a complex integration with a crypto-miner allows management to focus on the cleaner, high-margin AI stack.
• •October 2025 (Acquisitions): Acquired Marimo Inc. and Monolith AI. Strategic: Moving up the value stack from hardware rentals to developer tools.

Insider Trading Activity

• •Signal: CAUTION / SUPPLY OVERHANG
• •CFO Nitin Agrawal and CDO Brannin McBee entered Rule 10b5-1 trading plans in Aug/Sept 2025. Sales are scheduled to begin in late 2025/early 2026.
• •Interpretation: Executives are monetizing the IPO pop. Expect overhead resistance if price velocity slows. This reinforces our "Buy Dips, Don't Chase" stance.

Current News & Market Context

• •OpenAI Commitment: Secured a $11.9B commitment through 2030 (referenced in 10-Q). This diversifies the backlog slightly away from Microsoft, though Microsoft is likely still the ultimate payer in the ecosystem.
• •Meta Commitment: Secured $14.2B commitment through 2031. This is a massive validation of the platform outside of the Microsoft/OpenAI sphere.
• •Macro: AI Capex spend remains the dominant market theme for 2026. Fed rates stabilizing aids CRWV's debt servicing costs.

Financial Health & Valuation

Key Insight: CRWV is essentially a leveraged buyout of NVIDIA GPUs. They have $14B in debt against $20.6B in PP&E. The bet is that demand stays hot long enough to pay down the debt. If GPU spot prices crash, the equity is a zero. Currently, demand supports the leverage.

Competitive Position

• •Moat: Speed of deployment and the new software stack (Weights & Biases). CRWV deploys clusters faster than Azure/AWS.
• •Concentration Risk (The "Widowmaker" Risk): Customer A (Microsoft) accounted for 67% of revenue in Q3 2025. Customer B was 12%.
• •Risk: If Microsoft creates internal efficiencies or shifts back to Azure native hardware, CRWV revenue implodes. The Meta deal helps diversify, but concentration remains extreme.

Forensic Accounting Flags

• •⚠️ Revenue Quality: Accounts Receivable is $1.66B vs Revenue of $1.36B. DSO is rising. We need to watch if customers are stretching payment terms.
• •⚠️ Stock-Based Comp: $144M in Q3 2025. This is dilutive but typical for tech growth.
• •🔴 Related Party Transactions: Magnetar (major investor) has significant debt/equity interplay. Keep an eye on debt terms vs. equity value.

Technical Analysis & Trade Timing

• •Trend: Primary Trend UP. The stock is consolidating the post-IPO explosion.
• •RSI: Currently ~58 (Neutral). Not overbought (>70) or oversold (<30). Allows room for upside expansion.
• •Moving Averages: Price is holding above the 50-day SMA (estimated ~$78-80). This acts as dynamic support.
• •Setup: A classic "High Tight Flag" pattern appears to be forming. A break above $90 releases kinetic energy to the upside.

Short-Term Trading Strategy (2-5 Days)

• •Timeframe: SWING_2_5_DAYS
• •Position Size: 2% of portfolio (Scale in).
• •Plan: Watch $86.50 intraday support.
  • •Trigger: If $86.50 holds, Buy 50% size. Add remaining 50% on a break of $88.50.
  • •Take Profit: Scalp 1/2 at $92.00.
  • •Stop: Hard stop at $84.50 for this tight timeframe.
  • •Risk/Reward: 1:2.5.

Investment Recommendation

RATING: BUY (High Risk / High Reward)

Conviction: 7.5/10. The fundamental growth (+134%) overrides the valuation concerns for now. The technical trend is intact. However, the Customer Concentration and Debt Load prevent a "Strong Buy" rating. We are renting the momentum, not marrying the balance sheet.

One-Liner Thesis: CoreWeave is the purest leverage play on AI compute demand; buy the growth, but respect the debt-load stop loss.