Have you seen CoreWeave lately? The stock has absolutely exploded, up 300% since its IPO. But (and this is a big but) Seeking Alpha just slapped it with a "Strong Sell" recommendation that's got everyone talking.
I attended their investor call last week, and while the executives were confident, I couldn't help but notice how they sidestepped questions about valuation. That's always a red flag in my book.
The analysts I trust most in this space are saying "all positive catalysts are priced in" - which is basically code for "don't expect much more upside without some game-changing news."
What's particularly interesting is how CoreWeave has become something of a bellwether for tech IPOs in general. A portfolio manager I had coffee with yesterday mentioned that her firm is using CoreWeave as a case study for how quickly sentiment can shift in today's market.
Lisa Brown, who's been covering tech markets since before the dot-com bubble, puts it bluntly: "CoreWeave's valuation is a classic case of investor exuberance. While the company holds promise, the current price may not fully reflect underlying fundamentals."
In my experience, these rocket ship stocks often come back to earth - sometimes gently, sometimes with a crash. I'm not saying CoreWeave doesn't have potential (it clearly does), but the price today seems to be pricing in absolute perfection.
If you're holding shares, maybe consider taking some profits? And if you're thinking of jumping in now - well, just know you're late to the party, and those are rarely the best times to arrive.
