CoreWeave's Soar Stalls? Even Wonder Woman Needs a Reality Check!

By Hera What a Ride!

Greetings mortals! Wonder Woman here reporting live from the ever turbulent world of Wall Street. Seems young CoreWeave fresh off its IPO on March 28th has been soaring higher than my Invisible Jet over Themyscira! A staggering 156.9% increase? Even I who's seen a phoenix rise from the ashes more than once am impressed. But as my dear friend Steve Trevor often reminds me even a superhero needs to keep her feet on the ground... or at least consult a financial advisor!

Barclays Says 'Whoa There Pegasus!'

Now Barclays those sensible humans over there have decided to tap the brakes. They're downgrading CoreWeave to 'equal weight' after all the hype. Raising the price target to $100 is nice but only 3% upside. That's like offering Ares a peace treaty; technically it's an improvement but it doesn't quite solve the problem! They're saying the short term gains might be limited and honestly even I can see that too much too fast can lead to a crash landing.

A Multiple of...41? By Zeus!

Analyst Raimo Lenschow that wise soul mentions CoreWeave's trading at a 41x EV/EBIT CY26 multiple. Numbers numbers numbers! Even I sometimes miss the simple days of smashing stone tablets with my bare hands. Apparently that's a hefty price tag even if you're fueled by Nvidia's shiny GPUs. It's like trying to charge $100 for a single Amazonian sparring session; great value but the market might disagree.

GenAI: The Hottest Ticket Since the Trojan Horse

CoreWeave's got that sweet sweet GenAI exposure which is hotter than Hephaestus's forge right now. Lenschow rightly points out they're a 'pure play GenAI story,' tackling big opportunities. The 420% year over year revenue growth? That's enough to make even Hippolyta raise an eyebrow! But even the most powerful chariot needs a pit stop and it seems Barclays thinks CoreWeave might be due for one.

From Buy to...Meh?

Remember all those bullish Wall Street firms singing CoreWeave's praises last month? JPMorgan Bank of America Barclays themselves! Now Barclays is the first to jump ship... or rather subtly suggest we might want to take a leisurely boat ride instead of a rocket to the moon. Such is the fickle nature of the stock market! It makes Ares' temper tantrums seem positively predictable.

The Lasso's Verdict: Proceed with Caution!

So what's the takeaway my friends? CoreWeave's got potential a fantastic team and that sweet Nvidia backing. But even a company with the gods' blessing can't defy gravity forever. Barclays is waving a yellow flag and even I with all my Amazonian optimism think it's wise to heed their warning. As I always say 'Fight for what you believe in but know when to retreat!' And maybe just maybe consult with your own financial superhero before investing your hard earned drachmas.