Jason Hall

We got the updated full-year guidance.

Actually, one of the reasons the stock is down is, the guidance was a little bit lighter for the fourth quarter and the full year than investors were expecting.

But management's calling for about $5 billion in revenue for the full year.

That's more than double last year.

But it's going to spend $13 billion on CapEx projects, and it's going to pay about $1.25 billion in interest expense.

So, 25% of its revenue is going to go right back out the door just to service debt.

At the same time, it's been really acquisitive.

Since it went public this spring, it's already announced four acquisitions.

That's a lot of money flowing out the door that investors need to see deliver both continued growth and also help defend margins.

Here's the thing.

The CapEx that we're going to see this year,

to have to fund a lot more.

The thing is, the way the business works, you have to fund the capex before the data centers generate revenue.

Probably over time, the math should start becoming less unfavorable.

But the risk here is, we see this ravenous appetite for new AI infrastructure.

If that becomes sated, the momentum stops before CoreWeave gets its business to scale.

Now, the other part, too, is, let's be honest, moats are ephemeral, if existent at all, in technology.

CoreWeave's technical advantages today are helping it win big sales, but can it maintain them in the next contract cycle with its customers?

If not, it's going to be impossible to have any pricing power in what ultimately, I think, is going to be a commodity.

That's just selling compute cycles if you can't show customers a reason to pay up.