CoreWeave earnings reinforce bullish expansion cycle thesis

CRWV's latest earnings report feels like the "4 trillion RMB stimulus" moment for Chinese real estate companies in 2008. The cash flow was about to break, and then the 4 trillion stimulus arrived. Then housing prices rose, land reserves increased, and the balance sheet improved. Today's Neo Cloud is similar: model capabilities are continuously strengthening, bringing new demand/growth; the inventory of GPUs and power reserves is increasing, and the balance sheet is improving. CRWV's balance sheet improvement this time was achieved even while spending continued to expand at a high rate: Q2 CapEx $6.4 billion vs Q3 $9.44 billion This undoubtedly further strengthens the logic of the expansion cycle.