Economic Information Daily (June 20) reported that Wall Street investment bank Cantor Fitzgerald on Monday (19th) reiterated its 'Overweight' rating and $176 target price for AI cloud service provider CoreWeave, arguing that the recent sharp stock price correction is an overreaction.
The firm pointed out that CoreWeave does not face insufficient computing demand, customer demand remains strong, and computing resource supply remains tight. The market has overly focused on CoreWeave's financing risks while overlooking the significant improvement in the economics of the company's newly signed contracts.
The firm noted that CoreWeave's currently signed computing power service contracts have significantly improved compared to both two years ago and earlier this year, with nearly half the payback period for capital expenditures, meaning funds invested in data center construction and GPU equipment procurement can be recovered faster, reducing long-term financing pressure.
CoreWeave has fallen 23.5% cumulatively over the past week. Despite 115% revenue growth over the past 12 months, investors remain concerned about the debt financing costs required for its large-scale data center construction. CoreWeave closed at $61.12 on Monday, down 0.44%. (yc)
The firm pointed out that CoreWeave does not face insufficient computing demand, customer demand remains strong, and computing resource supply remains tight. The market has overly focused on CoreWeave's financing risks while overlooking the significant improvement in the economics of the company's newly signed contracts.
The firm noted that CoreWeave's currently signed computing power service contracts have significantly improved compared to both two years ago and earlier this year, with nearly half the payback period for capital expenditures, meaning funds invested in data center construction and GPU equipment procurement can be recovered faster, reducing long-term financing pressure.
CoreWeave has fallen 23.5% cumulatively over the past week. Despite 115% revenue growth over the past 12 months, investors remain concerned about the debt financing costs required for its large-scale data center construction. CoreWeave closed at $61.12 on Monday, down 0.44%. (yc)
