Key Stats for CoreWeave Stock
- Today’s Price Change: -7%
- Current Share Price: $63
- 52-Week High: $69
- CRWV Stock Price Target: $50
What Happened?
CoreWeave (CRWV) stock is down 7% after the AI infrastructure provider’s first earnings release as a public company, despite beating revenue expectations and raising full-year guidance.
It reported Q1 revenue of $981.6 million, significantly above the $853 million analysts expected, with an impressive 420% year-over-year growth. CoreWeave also raised its 2025 revenue outlook to $4.9-$5.1 billion, well above analyst projections of $4.61 billion.
During the quarter, OpenAI committed to a major five-year deal worth up to $11.9 billion, in addition to a separate $4 billion contract signed after the quarter ended.
This adds to CoreWeave’s existing relationship with Microsoft, which accounted for 62% of the company’s 2024 revenue. However, CoreWeave’s net loss widened to $314.6 million from $129.2 million a year earlier, partly due to $177 million in stock-based compensation costs related to its IPO.
See CoreWeave’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The adverse reaction to CoreWeave stock following strong headline numbers suggests investors may be struggling to understand the company’s unique business metrics and massive capital expenditure plans.
Particularly concerning to investors might be CoreWeave’s projected capital expenditures of $20-$23 billion for 2025, which will be necessary to support its ambitious growth plans.
Additionally, CoreWeave’s remaining performance obligation (RPO) decreased slightly to $14.7 billion from $15.1 billion at the end of 2024, which could raise questions about future growth sustainability despite the impressive revenue backlog.
Despite these concerns, CoreWeave stock had already gained 31% in the week before earnings, suggesting that some positive expectations had already been priced in.
Its future growth heavily depends on the availability of power for its data centers. By year-end, CoreWeave plans to more than double its deployed power.
CoreWeave’s significant deals with industry leaders like OpenAI demonstrate strong demand for its Nvidia GPU infrastructure services. However, the sharp post-earnings decline indicates investors may need more clarity on how CoreWeave will manage its aggressive growth trajectory while moving toward profitability.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
