Is CoreWeave the Next Great AI Stock or the Next WeWork?
To say that CoreWeave (NASDAQ:CRWV) has had a brutal week would be an understatement. The stock fell by more than 20% last week alone to a new 52-week low, and it now sits about 55% below its recent high. The company’s bonds were hit hard as well, and the market price of one issue due in 2031 briefly implied a yield of more than 16%, a level usually associated with financial distress.
Not surprisingly, some investors have started wondering whether CoreWeave is a viable long-term winner or if there are red flags that should prompt them to stay away. Will CoreWeave become one of the great AI stocks of the decade, or does it look too similar to companies that crashed and burned, such as WeWork, the once highly-regarded start-up that went from a $47 billion private valuation to bankruptcy in less than five years? I’ve seen several articles, videos, and social media posts comparing CoreWeave to WeWork, so I wanted to take a closer look.
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Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.