Root Logic

Trying to find businesses with a compelling narrative at a fair price - then sharing and tracking my thoughts.

[Root Logic @rootlogicblog]

I've spent a number of weeks getting to grips with CoreWeave, but it is becoming clear to me that this business right now is potentially criminally undervalued.

My full thoughts and analysis of $CRWV, alongside a comparison with $NBIS is below.

https://t.co/NZmUKcONCO

[Root Logic @rootlogicblog]

“Core gross margin benefitted from increased volumes. We achieved lower material purchasing cost per unit, production efficiencies and our warehousing and logistics facilities managed their staffing levels and carriage costs effectively too.”

Incredible efficiency at a time when I expected costs to rise and margins to take a real hit. $GAW

[Root Logic @rootlogicblog]

A few notes from the $GAW annual report.

“Amazon has brought onboard United Artists (UA) and Mike Flannigan. Vertigo and Henry Cavill remain involved as they have been for some time. Having completed initial outlines, Mike should soon be moving on to script.”

Writing is imminent - looks like the relationship with Amazon is in great shape. We could even see something on screens by late 2028 perhaps?

This is a long term investment, but I fully expect that the Amazon series will lead to significant acceleration on the bottom line.

[James @1James1n1]

#GAW - Finals

➡️Rev up 6.8%, PBT up 4.9%, EPS up 4.9%
➡️Announces 140p divi.
➡️"Group revenue and PBT at record levels"
➡️"we remain customer focused and look forward to building on the progress we have made".

[SixSigmaCapital @SixSigmaCapital]

Under rated post by Le shrub

Diversification gets a bad rep but if you own 10 DC names or 10 optics plays, that’s just one bet.

[MarineTraffic @MarineTraffic]

Strait Traffic remains resilient

#MarineTraffic data recorded 108 verified vessel transits through the Strait of Hormuz between 3 and 5 July, with 43 crossings on 3 July, 34 on 4 July and 31 on 5 July. Traffic was broadly balanced by direction, with 60 East-to-West crossings and 48 West-to-East crossings. Route selection remained fragmented, with 44 vessels using the Iranian Route, 30 using the Omani Route, 10 following the IMO Route and 24 classified as Dark or Unknown.

The transits covered a wide range of vessel types, including tankers, container ships, bulk carriers and gas carriers, underscoring that commercial shipping continues to move through the Strait while operators maintain diversified routing strategies amid ongoing geopolitical and maritime security risks.

[M. V. Cunha @mvcinvesting]

Wow.

$RKLB just announced it has entered into a definitive agreement to acquire $IRDM.

• $54/share in a cash and stock transaction
• Implied EV for Iridium of ~$8B

The Space Applications market is now fully unlocked.

[Root Logic @rootlogicblog]

Well, even if only warhammer enthusiasts watch it, it’s likely to drive sales for current and ex players… at no advertising cost to GAW - in fact they will take licensing revenue even in this bear case.

Henry Cavill’s involvement would also suggest that the show is really going to delight the fan base.

For me the opportunity is misunderstood!

[ValueFinder @VFinderModel]

26 WORLD CUP PREDICTIONS - MATCH 13
⚽️Predicted xG - Spain 3.53 vs 0.44 Cape Verde⚽️

Result - Spain 🇪🇸
OVER 2.5 Goals 🥅
BTTS No ❌

Not much value in this one, probably the most one-sided game you will see this World Cup data-wise.

I've gone for Spain > 2.5 Goals and Win-to-Nil.

[Root Logic @rootlogicblog]

@ehrazahmedd You are catching my interest with your Cerebras coverage.

[Root Logic @rootlogicblog]

@Dr_Crossroads @Jack57121645 Wild indeed - and shows there is seriously bad sentiment on the debt profile here. Potentially big opportunity for those of us that understand it! Fills me with hope that this business is being priced incorrectly right now.

[Daniel Koss @daniel_koss]

Let me tell you exactly what will happen to $NBIS demand in the next few months.

- open source models will become really good for coding

- millions of developers will seek lower cost alternatives to Claude Code and OpenAI Codex because they are currently spending billions on them and see real value but need to start being cost-efficient

- demand for companies like Nebius that provide the full infrastructure that's just ready to use and start building instantly, easily and at a fraction of the cost will 100x again

[Root Logic @rootlogicblog]

I see $CRWV as criminally undervalued right now - I make the case for a $116 bear case here: https://t.co/WIFmCneEUJ

[Kevin Maro @KevInvestingYT]

I've initiated a position in $CRWV in the overnight markets.

After being full-port $NBIS for a year, here's why I believe $CRWV is going to skyrocket in price over the next few months:

- $CRWV was named one of the first cloud providers to deploy Vera Rubin in H2 2026. Then Nvidia announced a brand new product, the standalone Vera CPU, and named CoreWeave as the first and only known customer. Another $2 billion invested directly into the company. 11% ownership stake. 8 gigawatts of AI factory capacity targeted by 2030.

- The "catch-up" trade: $CRWV is guiding $12 to $13 billion in 2026 revenue. $NBIS is guiding $3.3 billion. Same market cap. 4x the revenue.

The gap exists for a reason. CoreWeave carries severe debt and does not have a raid-boss CEO like Arkady running the show. Those are real risks.

But in a world where every tech company on the planet is compute-constrained, $CRWV has one direction in my opinion.

$200.

- SemiAnalysis, the most respected neocloud research firm in the world, gives CoreWeave their highest tier ranking. Not second. Not tied. Highest. The only cloud on earth with Platinum ClusterMAX status. Two years running.

- Revenue up 112% year over year. Backlog approaching $100 billion. The hyperscalers are customers, not competitors. Meta. Microsoft. Anthropic. They all pay CoreWeave because they cannot build what CoreWeave built fast enough themselves.

- The market cap is $60 billion on a business with $99 billion in locked revenue. Lol.

- I'm not worried at all about their debt. If they're not able to pay their debt for whatever reason, we've got bigger problems IMO.

I am the worlds biggest $NBIS bull, I could name every last aspect of that company, but $CRWV has gotten so cheap in my opinion that I had to take a position.

Not financial advice.

[Kevin Maro @KevInvestingYT]

I've initiated a position in $CRWV in the overnight markets.

After being full-port $NBIS for a year, here's why I believe $CRWV is going to skyrocket in price over the next few months:

- $CRWV was named one of the first cloud providers to deploy Vera Rubin in H2 2026. Then Nvidia announced a brand new product, the standalone Vera CPU, and named CoreWeave as the first and only known customer. Another $2 billion invested directly into the company. 11% ownership stake. 8 gigawatts of AI factory capacity targeted by 2030.

- The "catch-up" trade: $CRWV is guiding $12 to $13 billion in 2026 revenue. $NBIS is guiding $3.3 billion. Same market cap. 4x the revenue.

The gap exists for a reason. CoreWeave carries severe debt and does not have a raid-boss CEO like Arkady running the show. Those are real risks.

But in a world where every tech company on the planet is compute-constrained, $CRWV has one direction in my opinion.

$200.

- SemiAnalysis, the most respected neocloud research firm in the world, gives CoreWeave their highest tier ranking. Not second. Not tied. Highest. The only cloud on earth with Platinum ClusterMAX status. Two years running.

- Revenue up 112% year over year. Backlog approaching $100 billion. The hyperscalers are customers, not competitors. Meta. Microsoft. Anthropic. They all pay CoreWeave because they cannot build what CoreWeave built fast enough themselves.

- The market cap is $60 billion on a business with $99 billion in locked revenue. Lol.

- I'm not worried at all about their debt. If they're not able to pay their debt for whatever reason, we've got bigger problems IMO.

I am the worlds biggest $NBIS bull, I could name every last aspect of that company, but $CRWV has gotten so cheap in my opinion that I had to take a position.

Not financial advice.

[Root Logic @rootlogicblog]

@clockworksantos @MB_Hogan @DrTomsLens Sometimes literally haha

[Root Logic @rootlogicblog]

@MB_Hogan @DrTomsLens Time to rip that model up again…

[Root Logic @rootlogicblog]

Less and less crazy as time passes

[Root Logic @rootlogicblog]

@Leo_Traydes @RContr0l Suggested $500 for $AMD back in June on my blog and was told I’m crazy…

[Root Logic @rootlogicblog]

@riyadosofian Not quite accurate… those are customer deposits.

[Root Logic @rootlogicblog]

@MisterPariPassu Not a million miles off…

[Root Logic @rootlogicblog]

My $1000 valuation and full analysis following yesterdays $NBIS earnings: https://t.co/q5ltkwfS9E

You all know about the recent acquisitions, the deals Nebius has contracted and their leading position in inference - I'm not going to regurgitate that for you. My analysis is focussed purely on my analysis of how the business is executing, and what it means for the future and present value of the company.

Spoiler alert, the unit economics are proving themselves out, management is executing expertly and I'm very happy with the financial prudence being shown.

My base case is at $340 - but I see a genuine path to a valuation of $1000 over the next few years.

Please take a read, and let me know any feedback or critiques in my analysis. Valuing this company is hard - and we are all learning about the business over time, any insight or perspective I haven't considered is good for the community to hear!