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The $CRWV CEO was just interviewed by Cramer, and in response to a question about rapid asset obsolescence, he responded by claiming that his customers are willing to rent his GPU’s for “6 or 7 years”. (2) The Problem? Well in the 2Q $CRWV had avg capital employed of $19.1B in his business. 2Q EBITDA was $656M, or $2,624M annualized. But $19.1B amortized over 7 years is $2,729M of economic depreciation. Using the high end of the CEO’s useful life estimate, yields a 0% ROIC. (3) Also, if you’re going to make the claim that customers are willing to pay you for “7 years” on certain contracts…it helps to actually get paid. But given $CRWV’s almost 5 months(!) of receivables, that appears to be in question too. https://t.co/wRV3eFuYfG