Jim Cramer Says He’s “A Huge Fan” of CoreWeave Business But the “Stock’s Pretty Expensive”

CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks on Jim Cramer’s radar. Cramer said that he is a “huge fan” of the business but finds the stock “pretty expensive.” He stated:

“Right now, IPOs have become the new meme stocks, and the investment banks doing the offerings don’t seem to know it. The meme trend began with CoreWeave, which came public at 40, incredibly small float or amount that was offered for trading. The underwriters’ anxious for the deal to work. Prices on the whole are way lower than they thought they, they would have to do, and then they downsized the offering, selling just 37.5 million shares, raising just 1.5 billion. They originally hoped for something that’s a billion dollars more than that. Now, CoreWeave is worth over 50 billion. The stock was initially driven up by memesters, who knew there was no new supply, so they just kept buying and buying and buying. How do I know this? Because it’s a pattern that I’ve seen since 1998. I recognize it. CoreWeave, a data center company, was simply very easy to take up because there wasn’t much supply, especially after the deal was downsized. I’m a huge fan of the business, but the stock’s pretty expensive.”

Image by Sergei Tokmakov, Esq. from Pixabay

CoreWeave (NASDAQ:CRWV) provides a cloud platform optimized for generative AI that provides GPU and CPU compute, storage, networking, and managed services. The company supports workloads like model training, AI inference, and rendering, and includes tools for infrastructure management and dataset optimization.

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Disclosure: None. This article is originally published at Insider Monkey.