Cororeweave is the best Neocloud buy. What does Wall Street have against Cororeweave? Shares of the Neocloud have been stalled for 12 months.
Coreweave is now trading at just 2.2 times its expected 2028 revenue, well below both Nebius and iron. Cororee has the biggest business expected to generate 12.9 billion in revenue this year about four times that of Iron which in turn is about four or sorry of Nebius which is in turn about four times that of iron.
Now Cerebrris has been highly overvalued. Um I called it highly overvalued at the IPO. It's come down uh it came down quite a bit into like the low to mid 200s uh a little bit ago and then it just came down even more.
I like it. Uh I I think some of that initial pain is drisked. Could be wrong. Maybe maybe it's still too early for it. But I think this is very interesting.
and coreweave too they are doing some different things too. I never like Cory because they're extremely high debt levels and uh they're one of these NeoCloud players, but they too have raised additional bunch of debt which will dilute their stock and of course much of it is at a quite you know quite a low rate compared to some of the other junk stuff we saw.
But again this impacts dilution in your stock etc. So watch out out there.
We've seen companies like Coreweave partnering. What really excites me about Coreweave is the pricing of the GPU , but on September 17th they announced that they are contracting new compute capabilities at a higher price.
We talked about this in a previous episode, that now they are looking at short-term data subscriber contracts of about 3 to 6 months, which cost about 40 million per megawatt.
But Coreweave is another disaster. Coreweave just raised more money, but they don't even have the money to pay their bills right now. So, Coreweave has about $8 billion in cash and receivables, but they have $18 billion in bills to pay.
They just raised $3 billion in convertible notes. The conversion they raised to $3.7 billion, but even if you add $4 billion to that, it's still not enough to pay their bills for the next 12 months. Korweef has a bad balance sheet.
On today's episode, what I really want to cover is two NeoCloud players, Nebius and Core just reported some amazing announcements.
Now, I'm going to go with Cororeweave right at the end of this episode. There's also some bearish things to consider.
Next, I want to jump into one of my favorite stocks. This is Cororeweave. Now, this is uh one of my favorite NeoCloud players right now. This is the reason I'm bullish in Neo in in Core is at a $43 billion market cap.
Yet, you have over 1 gawatt of active power. You can make a lot of revenue with that gigawatt when you kind of put it on a yearly basis and when all of that starts being charged really well.
So, I'm pretty excited, especially as some of their longer contracts are starting to pull over. They're going to be able to kind of get some of these pricings better on.
Companies like Marll, SK Highex, Micron, and Super Micro Computer each down 6% while Core Weave, SanDisk, Intel, and AMD were all down by more than 4%.
