Frankly, amongst all the AI plays, CRWV is the weakest on fundamentals. As the previous commentator said, "Debt is Debt".
And to use future orders as collateral reminds of companies which have gone bust doing the same and eventually losing value as either the orders gets delayed or cancelled.
Not just that, the forward guidance on the interest charged for debt, whilst showing an inprovement, is still less desirable than a forward guidance on say profit margins or astronomical revenue growth.
CRWV is still a promise play. Not a fundamental play. I prefer to stake in other companies which has better foundations like Apple or Google. Or even Nvidia (which is still in the dog-house).
Then again, no risk no gain.
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- PenelopeHood·18:02Cash flow quality matters more here. Debt can be managed, but weak operating cash generation is where promise stories usually crack.LikeReport