BMSInvests
Aggressive-Growth Investor, Ondas Holdings Focus
CoreWeave's building buyer pressure despite deteriorating sentiment points to an upside reversal. Every time this divergence has appeared in the stock, it has reversed to the upside. x.comÂ
CoreWeave is set up for a large gap higher this month, with a move from the $80s toward $100 possible on rising volume. A double bottom at $80 established a floor, and the open gap at $92-94 is the first target. Recent executive share sales were made under pre-arranged 10b5-1 trading plans set up months in advance, not out of fear about the stock. x.com x.comÂ
CoreWeave looks like a poor long because its debt now exceeds its market capitalization. x.comÂ
CoreWeave looks positioned to be one of the biggest beneficiaries of years of demand for GPU computing at scale. It should be one of the most important players in the AI infrastructure buildout, with Jensen Huang and Nvidia deeply tied to it. At $50 a share, its debt load is not a concern; the stock could look like one of the best buying opportunities by decade-end. x.com x.comÂ
Sellers of millions of dollars in December 2028 $200 puts on CoreWeave are signaling the stock will be sent higher soon. x.comÂ
CoreWeave's debt-funded GPUs make financing costs central to its business, while credit markets now price severe distress. Its five-year CDS reached 1,194 basis points on October 15 and remained near 1,145 last week, implying roughly 60% default odds over five years. If yields fall after the FOMC yet shares cannot hold $50, the balance sheet deserves more scrutiny than the macro backdrop. x.comÂ
CoreWeave's falling credit-risk spread and record-volume lower low point to possible capitulation after severe news. Its five-year CDS has fallen nearly 500 basis points from a 1,500-basis-point high; over the past two weeks it faced the worst news short of bankruptcy, including a CDS scare and Elon Musk spreading fear about neoclouds. This could be the bottom if the stock reclaims its July 29 level. x.comÂ
CoreWeave is a buy now, with Wall Street analysts' 12-month price target of $144.46 implying about 73% upside. x.comÂ
CoreWeave's five-year CDS spread adds to the weight of its credit risk. It has reached 1,200 basis points. x.comÂ
CoreWeave's 3.2x 2027 revenue multiple makes it one of the most attractive stocks in the market. x.comÂ