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CoreWeave (CRWV) Stock Tanks Over 10% As Investors Worry About Narrowing Margins

Aditya Raghunath
Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Aug 13, 2025
CoreWeave (CRWV) Stock Tanks Over 10% As Investors Worry About Narrowing Margins

@Vladimir_Timofeev from Getty Images via Canva

Key Stats for CoreWeave Stock

  • Price Change for $CRWV stock: -10.4%
  • Current Share Price: $133
  • 52-Week High: $187
  • CoreWeave Stock Price Target: $110

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What Happened?

CoreWeave (CRWV) stock dropped over 10% even as the AI infrastructure provider beat revenue and guidance expectations in its second-quarter earnings report.

The company reported revenue of $1.21 billion, above the $1.08 billion expected by analysts. Moreover, sales rose by over 200% year over year.

However, investors appeared concerned about several factors despite the strong topline beat. CoreWeave’s operating margin shrank to 2% from 20% a year ago, primarily due to $145 million in stock-based compensation costs.

CoreWeave reported an adjusted loss per share of $0.27, compared to estimates of $0.20 per share. It also carries a substantial debt of $11.1 billion as CoreWeave rapidly scales its AI cloud infrastructure.

CoreWeave Stock Q2 Earnings vs. Estimates (TIKR)

Additionally, CoreWeave’s recent $9 billion all-stock acquisition of Core Scientific may be weighing on investor sentiment, as the deal will significantly dilute existing shareholders when it closes in the fourth quarter.

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What the Market Is Telling Us About CRWV Stock

The market’s adverse reaction to CRWV stock suggests investors are prioritizing profitability concerns over CoreWeave’s impressive revenue growth trajectory.

Despite raising full-year revenue guidance to $5.15-$5.35 billion (up from $4.9-$5.1 billion previously), representing 174% growth, the focus appears to be on the company’s path to sustainable margins.

CoreWeave CEO Mike Intrator highlighted expansion with major clients, including OpenAI, and new enterprise customers like Goldman Sachs and Morgan Stanley during the quarter.

CoreWeave continues to be capacity-constrained with demand outstripping supply, which typically indicates strong underlying business fundamentals.

CoreWeave Stock Price Target Estimates (TIKR)

However, with CoreWeave stock having already gained over 200% year-to-date and trading at a sizeable premium, investors may be taking profits and reassessing the valuation following the mixed earnings picture.

This appears to be a case where strong operational results weren’t enough to overcome concerns about profitability and share dilution from the pending acquisition.

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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!

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