JP Morgan on $CRWV: “pricing & margins will overwhelm the increase in debt.” This is exactly what I’ve been trying to explain for months. As you see in the model below, if the demand holds up and $CRWV executes on capacity targets, interest expense as a percentage of revenue will drop from 22% levels now to 7% in 2030. Note that the model disregards any price increases and assumes just around $10 billion revenue per GW. In reality, we’ll likely see this rate go higher as short term rates are currently 3-4x the long-term rates. $CRWV is not a leap of faith trade anymore, it’s a perfectly logical investment.
View on X ↗