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CoreWeave’s Growth Amid Financial Risks
CoreWeave (NASDAQ: CRWV) reported a staggering 738% increase in revenue for 2024, reaching $1.92 billion, driven by demands from big tech for AI infrastructure. The company’s adjusted EBITDA surged 1,073% to $1.22 billion.
As of September 2024, CoreWeave operates 33 data centers across the U.S. and Europe, up from just three at the end of 2022. Its total revenue backlog now exceeds $55 billion. Despite the rapid growth, CoreWeave has extensive debt, with a debt-to-equity ratio of 7.5, indicating potential financial risk as it expands further.
Analysts project a compound annual growth rate (CAGR) of 114% for revenue through 2027, aiming for $18.7 billion, and a CAGR of 124% for EBITDA reaching $13.7 billion. However, the company’s reliance on Microsoft for about 70% of its revenue raises concerns about sustainability.
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