ALERT: You Might Want To Avoid Buying This Stock Soon...
In a Nutshell
Coreweave is a highly volatile speculative stock trading at elevated levels with a $58B market cap despite losing $1.9B annually on $7.5B revenue, making it a dangerous short candidate with 40-55% downside risk. The stock exhibits repeated pump-and-dump patterns, and at current prices the potential losses far outweigh upside gains. Traders should use small position sizes (20-30% allocation) and wait for clear rejection signals before shorting, while avoiding this stock entirely if they lack strong risk management.
These notes were generated by AI and may contain inaccuracies.
Ricky discusses one of his recent trades from Friday, which was one of his biggest trades of the week. He made this trade while driving from Southern California to Reading, California for an Iron Man 70.3 race, focusing on trading as a passenger during the 9-hour drive. He made a little over $9,000 that day.
Coreweave is an incredibly volatile stock that went from lows of $58 to nearly $59, ripped up to highs of $117 to nearly $118, then pulled back to lows of $100. The last gap up occurred after earnings were reported. Coreweave is notorious for pumping and dumping repeatedly. Beginners with terrible risk management are advised to stay away from this stock.
On Friday, the stock demonstrated extreme volatility within the first hour of market open. It moved from lows of $106 to highs of $110 (4% move), then pulled back from $110.30 to lows of $103 (6% move down), then pumped up to highs of nearly $108 (4% move up), back down to lows of $103.50 (3-4% move), ripped up to highs of nearly $106, back down to $102.50 (3.5% move), and ended the day from lows of $102.50 to highs of nearly $106 (3-4% move) before a small pullback in extended hours.
Coreweave has shown consistent patterns of ripping up and dipping down repeatedly. The day after earnings, it pumped up to highs of $111 then retraced to lows of $106, fell to lows of $103, ripped up to highs of $117.50 (13% move), then back down (10% move). From current highs, a pullback to pre-earnings levels represents 15-16% downside. Zooming out shows potential 37% downside from current highs of $100-$105 to previous lows.
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