CoreWeave, an AI-powered cloud computing company, is set to reveal its third-quarter results on November 10. The company, which had a remarkable IPO this year, saw its shares rise about 186% from the initial offering price of $40, despite some recent declines. Analysts predict a loss of $0.40 per share with revenues around $1.29 billion for the quarter.
Rising Revenue and Caution Ahead
CoreWeave’s revenue has surged impressively, jumping from $395 million in Q2 2024 to $1.2 billion in Q2 2025. While this growth is promising, the company still operates at a loss. However, a significant backlog of $30.1 billion indicates strong future demand.
Still, analysts remain cautious. They cite concerns over high valuation, considerable debt, and reliance on major clients like Microsoft. These factors could pose risks for the company’s stability.
Recent Partnerships and Challenges
On November 5, CoreWeave teamed up with CrowdStrike to create a secure AI cloud, combining CoreWeave’s computing power with CrowdStrike’s Falcon security platform. This collaboration aims to improve the speed and safety of AI systems.
However, on October 30, a $9 billion takeover bid for Core Scientific was rejected by shareholders, who felt it undervalued the company. CoreWeave defended its offer as fair, but declined to adjust it following the criticism.
Analyst Perspective Post-Rejection
After the failed merger, analyst Gregg Moskowitz from Mizuho Securities shared that he doesn’t anticipate long-term damage for CoreWeave. He holds a “Hold” rating with a price target of $150, which suggests a potential 14.5% upside. The stock experienced a 6.3% decline after the merger announcement. Despite losing this opportunity to cut funding costs, CoreWeave is still moving forward with its growth strategies. More details might emerge when the company releases its earnings report.
Market Sentiment and Expectations
Options traders expect CRWV stock to move about 16.17% in either direction after the earnings report, highlighting ongoing market interest and uncertainty surrounding the results.
Investment Outlook
Overall, analysts have a “Hold” consensus on CoreWeave, with 12 Buy ratings, 8 Hold ratings, and 1 Sell rating. The average price target stands at $146.65, suggesting nearly a 28% upside from where it is currently.
Understanding these developments can help investors navigate the complexities of investing in tech stocks like CoreWeave.
For more about CoreWeave’s performance and analyst ratings, check out TipRanks.
