Dear Reader,
I picked Nvidia in 2017….
Before it jumped as high as 3,852%…
And I just revealed the exact day this AI boom will end.
And if you’re wondering how that’s possible…
Well, I’m using an investment secret that correctly predicted the end of every major boom over the last century…
It predicted the end of the roaring 20s boom on October 31st of 1929… right before the great depression crash…
It predicted the end of the Reagan Bull Market in the 1980s on September 1st of 1987… right before the black Monday crash…
It predicted the end of the dotcom boom on February 1st 2000…
It predicted the end of the housing bubble bull market on January 2nd 2008…
And it predicted the end of the Post-Financial Crisis Recovery in February 3rd 2020… right before the Covid crash…
This same investment secret…
Is now pointing to the exact day this AI boom will end (click here to see it.)
Stay sharp,
JC Parets, CMT
Founder, TrendLabs
Spending Fears Weigh on CoreWeave, But the Backlog Tells Another Story
Author: Thomas Hughes. Publication Date: 2/27/2026.
Key Points
- CoreWeave is positioning for sustained hypergrowth as it ramps up its expansion plans.
- Rising debt and dilution are risks for this market that are weighing on stock prices, keeping them in the Buy Zone.
- Institutional data suggests this group is accumulating CoreWeave aggressively and provides a solid support base near February lows.
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CoreWeave (NASDAQ: CRWV) stock has been depressed in Q1 2026 amid concerns about spending, dilution and execution risk. However, analyst sentiment, institutional trends, strong results and a growing backlog suggest those fears may be overblown.
The takeaway for investors is that the road ahead may be bumpy, but this GPU-as-a-Service and AI infrastructure stock looks inexpensive relative to long-term forecasts that continue to expand.
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The company reported losses but projects margin improvement in coming quarters and years as new capacity comes online and backlog converts to revenue; profits are expected by the middle of the next fiscal year and may arrive sooner than anticipated. Although shares trade at a premium today that reflects high growth expectations, the market may still be undervaluing the company relative to its long-term potential (read more).
CoreWeave's Market Undervalues the Stock Relative to Long-Term Forecast
Forward consensus targets assume a conservative 20x earnings multiple as early as 2028, with longer-term forecasts pricing the stock in the low single digits. If earnings grow to meet these forecasts, the stock price could rise by several hundred percentage points over the next few years — potentially as much as 600% in optimistic scenarios.
Institutional activity shows that institutions have been aggressively accumulating shares since the IPO. Dilution is a concern — the share count climbed materially over recent quarters — but institutions continue to buy, and capitalization is no longer a near-term concern. The company will likely need additional capital as it scales capacity, yet that same capacity expansion should generate accelerating cash flow to help offset capital needs and the debt load.
Institutional investors provide a solid support base, owning roughly 55% of the stock as of late February, and have been net buyers at a pace exceeding $2 bought for every $1 sold. Eventually the impact of dilution should subside, allowing institutional demand to lift the stock. The more immediate issue is analyst caution, as many remain in a wait-and-see mode in light of rising leverage.
Analysts' Responses Muted: CoreWeave to Rise 30%
Analysts' commentary has been generally positive but muted, with only one tracked rating revision and limited public notes. Analysts highlighted capacity ramps and the expanding backlog as positives, while flagging rising spending and its impact on cash flow as the key near-term concern.
The Q4 2025 report showed a threefold increase in debt, a more than 100% year-over-year rise in share count, and sizable increases in sales & marketing, general & administrative, and technology & infrastructure spending, which contributed to a wider-than-expected loss. As it stands, CoreWeave carries a consensus rating of Moderate Buy from 30 analysts, with an average price target of $125 — about 30% above recent February support levels.
Company guidance assumes robust spending in 2026, but management says much of that investment will be offset by backlog. Backlog surged more than 4x year-over-year to nearly $67 billion in contract value, a company record, supporting expectations for continued hypergrowth. The company forecasts more than $12.5 billion in annual revenue, up over 140% from the prior fiscal year.
CoreWeave's balance sheet is a potential risk. Cash and receivables rose, offsetting increases in debt and liabilities and keeping equity positive, but cash burn is expected to continue in the near term. If cash burn accelerates, equity could erode and weigh on sentiment and the share price. The mitigating factor is that new capacity is coming online steadily and contracted capacity increases are beginning to drive cash-flow improvements.
CoreWeave Retreats Despite Solid Report: Lower Lows Possible
While CoreWeave's long-term outlook remains attractive, near-term headwinds have set the stock up for further weakness. Shares are down more than 10% since the release, confirming resistance near the cluster of moving averages and increasing the risk of a deeper pullback. Price action could retest recent lows or move even lower; a breach of fresh lows would be concerning and could open the door to a much larger decline — potentially toward the $40 level — though that outcome is considered unlikely.
More likely, institutional buyers will continue to support the story, providing a demand floor in the $65 to $85 range as capacity ramps and backlog convert to revenue over the coming quarters.
2026 Food Inflation Outlook: This ETF Could Outperform
Authored by Jordan Chussler. Originally Published: 2/21/2026.
Key Points
- With a loss of more than 6%, consumer discretionary stocks have performed the worst over the past month.
- But the fast food and quick service restaurant market is expected to grow at a 14.8% CAGR through 2033.
- As dining out is forecast to get nearly 5% more costly in 2026, the EATZ ETF provides a basket of fast food and casual dining restaurants that are poised to take advantage.
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Consumer discretionary stocks haven't fared well in 2026. After finishing with a 6% gain last year—third-worst among the S&P 500's 11 sectors—the group has posted a 2.7% year-to-date (YTD) loss, also third from the bottom.
Things have looked even bleaker over the past month, during which the consumer discretionary sector has lost 6.46%—the worst performance in the S&P 500. But help could arrive later this year from an unlikely source: food inflation.
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Last month, the U.S. Department of Agriculture released its Food Price Outlook for 2026. While the cost of some food items is expected to slow, most others are forecast to rise. One notable takeaway: prices for food away from home (i.e., dining out) are expected to surge nearly 5%.
That's potentially good news for an exchange-traded fund (ETF) that offers basket exposure to several fast-food and fast-casual dining chains.
Food Inflation Is Not Going Away
If you thought prices were out of control in 2025, prepare for further pressure in 2026. Products like pork and eggs are expected to decline, but beef and veal prices are forecast to increase about 9.4% this year. That rise will affect diners more than grocery shoppers.
Food-at-home prices are predicted to increase roughly 1.7%, while food-away-from-home prices are expected to climb about 4.6%. That could dissuade some consumers from dining out. Yet many restaurant companies that saw weak stock performance in 2025 still posted top-line growth despite falling share prices and shifting consumer sentiment.
Take, for example, Chipotle (NYSE: CMG). Although CMG's shares were pressured last year, the company has consistently produced year-over-year (YOY) revenue growth. Last year's growth slowed to 5.41% YOY even as the stock fell more than 30%, while the company averaged 14.45% YOY revenue growth from 2022 to 2024.
Although inflation remains sticky this year, it is well below the 2022 levels that marked a 41-year high in consumer price increases, when food prices rose 9.9% (BLS). Thus, it could be argued that Chipotle's slower revenue growth last year was an outlier, and that stronger results could return even if annual growth moderates slightly.
Consumers may bemoan the loss of dollar menus, but they have been—reluctantly—accepting $12 burgers, $15 burritos and $20 pizzas.
Industry consultancy Grand View Research estimates that the global fast-food and quick-service restaurant market was worth more than $296 billion in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 14.8% from 2026 through 2033, reaching an estimated $885 billion-plus by the end of that period.
That outlook is particularly encouraging for one ETF.
Order Up Exposure With the EATZ ETF
Since its launch on April 20, 2021, the AdvisorShares Restaurant ETF (EATZ) has given investors targeted exposure to the fast-food and quick-service restaurant market. The actively managed fund has an expense ratio of 0.99%, partially offset by a modest dividend yield of 0.48% (about $0.13 per share annually).
The ETF's top holdings, by weight, include Nathan's Famous (NASDAQ: NATH), Dutch Bros (NYSE: BROS), Darden Restaurants (NYSE: DRI), Yum! Brands (NYSE: YUM), Chipotle, The Cheesecake Factory (NASDAQ: CAKE), El Pollo Loco (NASDAQ: LOCO), Texas Roadhouse (NASDAQ: TXRH), Domino's (NASDAQ: DPZ), DoorDash (NASDAQ: DASH), Wingstop (NASDAQ: WING), and others.
Admittedly, some of those stocks have struggled over the past year. In many cases, however, those setbacks look like temporary aberrations rather than permanent shifts. For example, Chipotle has a history of rebounding after periods of slower growth: after nearly 15% YOY growth in 2019, revenue growth dipped to about 7.13% in 2020, then rebounded to more than 26% the following year.
Last year, Chipotle reported record net income. Darden Restaurants (owner of Olive Garden and LongHorn Steakhouse), Dutch Bros and Texas Roadhouse also reported strong results. Domino's, which didn't report earnings until Feb. 23, appeared on pace to set record revenue, as did The Cheesecake Factory and DoorDash when they next reported.
The fund carries an aggregate Moderate Buy rating despite a notable short interest approaching 24%—more than 21,000 of roughly 90,000 shares outstanding. EATZ's liquidity may also be a concern: its average daily trading volume is only about 2,240 shares.
But for investors who believe in the long-term prospects of the global fast-food and quick-service restaurant market, the AdvisorShares Restaurant ETF can serve as an all-you-can-eat buffet for your portfolio.
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