CoreWeave stock falls despite solid earnings as Goldman maintains Neutral rating

Published 13/08/2025, 11:04
CoreWeave stock falls despite solid earnings as Goldman maintains Neutral rating

Investing.com - CoreWeave (NASDAQ:CRWV), currently valued at $71.4 billion, saw its stock fall 10% in after-hours trading following its second-quarter 2025 earnings report, despite posting revenue growth that exceeded analyst expectations. According to InvestingPro data, the stock has shown significant volatility, delivering a 272% return over the past six months.

The cloud computing infrastructure provider reported revenue growth of 207% year-over-year, coming in 12% above consensus estimates. CoreWeave also delivered adjusted operating margins of 16%, which was 170 basis points higher than consensus forecasts. The company maintains a robust gross profit margin of 74.28%, though InvestingPro analysis indicates short-term liquidity challenges with a current ratio of 0.44.

Goldman Sachs maintained its Neutral rating and $120 price target on CoreWeave following the results. The firm noted that while the quarter provided "further validation" of CoreWeave’s business model, investors had expected more aggressive capital expenditure deployment and greater additions to remaining performance obligations.

CoreWeave reported capital expenditures of $2.9 billion for the quarter, below its guidance range of $3-3.5 billion, and maintained its full-year capital expenditure guidance despite raising revenue projections. The company’s backlog increased to $30.1 billion from $25.9 billion in the previous quarter.

The cloud infrastructure provider demonstrated solid capacity expansion with contracted power reaching 2.2 gigawatts, an increase of 600 megawatts quarter-over-quarter, and expects active power to reach 900 megawatts by the fourth quarter of 2025 compared to 470 megawatts currently. For deeper insights into CoreWeave’s growth trajectory and comprehensive financial analysis, access the full Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks.

In other recent news, CoreWeave reported second-quarter revenue of $1.21 billion, surpassing consensus estimates of $1.08 billion. The company’s adjusted operating income reached $199.8 million, exceeding expectations of $159.4 million, driven by strong compute demand in a power-constrained environment. Stifel responded by raising its price target for CoreWeave to $120 from $115, maintaining a Hold rating. Meanwhile, DA Davidson reiterated its Underperform rating with a $36 price target, citing concerns over deteriorating profitability and increased borrowing costs. Mizuho maintained a Neutral rating with a $150 price target, acknowledging the company’s significant post-IPO stock performance. Additionally, JMP Securities reiterated its Market Perform rating, noting CoreWeave’s stronger-than-expected results and a positive revised outlook. Morgan Stanley kept its Equalweight rating with a $91 price target, highlighting CoreWeave’s strong positioning in the GPU build-out market. These developments reflect a range of analyst perspectives on CoreWeave’s recent performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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