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CoreWeave: Shades of Amazon's Growth-First Strategy
CoreWeave Reaches $5 Billion in Revenue
Thursday, CoreWeave reported Q4 earnings results after the market close. The large-scale GPU-accelerated operator reached an impressive milestone, becoming the fastest cloud provider to reach $5 billion in annual revenue. Total annual revenue more than doubled from $1.9 billion in 2024 to $5.1 billion in 2025, marking a 168% increase.
CoreWeave Backlog Surges
Meanwhile, revenue backlog surged to $66.8 billion, more than quadruple where it started the year ($15B). Recently, CoreWeave received a $2 billion investment from Nvidia, the AI king. The investment is significant for the company because it remains a preferred partner for Blackwell GPU deployments and the first to deploy Nvidia GB300 NVL72 systems.
CoreWeave sports some of the fastest bottom-line growth on Wall Street. That said, shares are well of their highs ~$187 from last June for three main reasons:
1. Lock Up Expiry: When a company has a massive post-IPO move, early private investors often use liquidity to take chips off the table.
2. Magnetar Capital Sales: Magnetar Capital was an early strategic investor in CoreWeave prior to its IPO. Like early insiders, the company used IPO liquidity to secure some profits.
3. Debt Load: As hyperscalers’ CAPEX spending boom continues and the AI revolution gains momentum, CoreWeave is forced to take on billions in debt to meet demand.
Why CoreWeave is a Buy
CRWV shares are a buy because the three challenges I described above are real, but will subside in time. First, the IPO lock-up period expired in August, so insider selling is likely to dissipate over tim. Second, although Magnetar is a major shareholder that sold some of its CRWV shares, the company said it has no plans to divest and still believes in the long-term story.
CoreWeave’s Growth-First Strategy Mirrors Amazon
Finally, and most importantly, CoreWeave’s business can be compared to the railroad business in the 19th century. Upfront costs are astronomical. However, once the front-loaded costs (tracks) are built, the company will enjoy extremely high margins in the long run. A perfect precedent for CoreWeave is Amazon, which was famously unprofitable for more than a decade but saw its stock skyrocket. Instead of realizing profits, Amazon wisely reinvested potential profits in infrastructure, technology, and its customer experience. My suspicion is that CoreWeave management is following the exact same playbook.
Bottom Line
Ultimately, the volatility surrounding CoreWeave is a byproduct of its massive scale rather than a flaw in its fundamentals. While the market may fret over short-term debt, the long-term thesis remains anchored by a massive backlog and a direct blessing from Nvidia.
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Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: CoreWeave, Nvidia and Amazon
For Immediate Release
Chicago, IL – March 2, 2026 – Today, Zacks Investment Ideas feature highlights CoreWeave (CRWV - Free Report) , Nvidia (NVDA - Free Report) and Amazon (AMZN - Free Report) .
CoreWeave: Shades of Amazon's Growth-First Strategy
CoreWeave Reaches $5 Billion in Revenue
Thursday, CoreWeave reported Q4 earnings results after the market close. The large-scale GPU-accelerated operator reached an impressive milestone, becoming the fastest cloud provider to reach $5 billion in annual revenue. Total annual revenue more than doubled from $1.9 billion in 2024 to $5.1 billion in 2025, marking a 168% increase.
CoreWeave Backlog Surges
Meanwhile, revenue backlog surged to $66.8 billion, more than quadruple where it started the year ($15B). Recently, CoreWeave received a $2 billion investment from Nvidia, the AI king. The investment is significant for the company because it remains a preferred partner for Blackwell GPU deployments and the first to deploy Nvidia GB300 NVL72 systems.
CoreWeave sports some of the fastest bottom-line growth on Wall Street. That said, shares are well of their highs ~$187 from last June for three main reasons:
1. Lock Up Expiry: When a company has a massive post-IPO move, early private investors often use liquidity to take chips off the table.
2. Magnetar Capital Sales: Magnetar Capital was an early strategic investor in CoreWeave prior to its IPO. Like early insiders, the company used IPO liquidity to secure some profits.
3. Debt Load: As hyperscalers’ CAPEX spending boom continues and the AI revolution gains momentum, CoreWeave is forced to take on billions in debt to meet demand.
Why CoreWeave is a Buy
CRWV shares are a buy because the three challenges I described above are real, but will subside in time. First, the IPO lock-up period expired in August, so insider selling is likely to dissipate over tim. Second, although Magnetar is a major shareholder that sold some of its CRWV shares, the company said it has no plans to divest and still believes in the long-term story.
CoreWeave’s Growth-First Strategy Mirrors Amazon
Finally, and most importantly, CoreWeave’s business can be compared to the railroad business in the 19th century. Upfront costs are astronomical. However, once the front-loaded costs (tracks) are built, the company will enjoy extremely high margins in the long run. A perfect precedent for CoreWeave is Amazon, which was famously unprofitable for more than a decade but saw its stock skyrocket. Instead of realizing profits, Amazon wisely reinvested potential profits in infrastructure, technology, and its customer experience. My suspicion is that CoreWeave management is following the exact same playbook.
Bottom Line
Ultimately, the volatility surrounding CoreWeave is a byproduct of its massive scale rather than a flaw in its fundamentals. While the market may fret over short-term debt, the long-term thesis remains anchored by a massive backlog and a direct blessing from Nvidia.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.