CoreWeave Stock Has Lost More Than a Third of Its Value in 3 Months. Time to Buy?

CoreWeave (NASDAQ: CRWV) stock's recent pullback is providing investors a masterclass on why valuation matters. On Monday, the company said its third-quarter revenue more than doubled year over year and its net loss narrowed significantly. Yet shares took a big hit, extending a slide that began ahead of the report. While there are several drivers behind the stock's decline, a stretched valuation has been the primary culprit.As an AI (artificial intelligence) infrastructure provider that leases cutting-edge chips and capacity to hyperscalers, the company has benefited from euphoric expectations during this aggressive AI buildout. With its business closely tied to the AI boom, shares have ridden the wave of spending on new data centers supporting AI computing. But there's a flipside to the massive valuation the stock commands: Any uncertainty about the durability of that buildout can spark skittishness -- and that's exactly what's happening.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool