CoreWeave stock rating reiterated at Underperform by DA Davidson

Investing.com - DA Davidson has reiterated its Underperform rating and $36.00 price target on CoreWeave (NASDAQ:CRWV), currently valued at $71.4 billion, following the company’s second-quarter 2025 earnings report. According to InvestingPro data, the stock has shown significant volatility, trading between $33.52 and $187 over the past 52 weeks.

The research firm cited deteriorating profitability and increased borrowing costs as key concerns, stating that CoreWeave’s business model "is not worth scaling" in their view. Despite maintaining a strong gross profit margin of 74.28%, InvestingPro analysis shows the company remains unprofitable with negative earnings per share of -$5.19.

CoreWeave reported capital expenditures of $2.9 billion for Q2 2025 and guided Q3 2025 capex to between $2.9 billion and $3.4 billion, while maintaining its full-year guidance of $20 billion to $23 billion, with the majority expected in Q4.

DA Davidson believes CoreWeave will need to add approximately $10 billion more debt during the remainder of the year to support its data center expansion plans, potentially requiring significant capital raises in the near term to meet guidance and capacity commitments.

The company aims to have over 900MW of active power by the end of the year and noted that demand continues to outpace supply, according to management statements cited in the analyst report. For deeper insights into CoreWeave’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, CoreWeave Inc. reported its financial results for the second quarter of 2025, showcasing a significant revenue increase. The company’s revenue surged to $1.2 billion, marking a 207% growth compared to the previous year. Despite this impressive revenue growth, CoreWeave experienced a notable earnings miss, with earnings per share (EPS) at -$0.6, which was below the forecasted -$0.2. JMP Securities reiterated its Market Perform rating on CoreWeave, highlighting the company’s stronger-than-expected results and a positive revised outlook. They noted CoreWeave’s strategy to shift balance sheet liabilities to other firms in exchange for high initial margins over 3-4 year terms. Meanwhile, Mizuho (NYSE:MFG) maintained its Neutral rating and set a price target of $150.00 on CoreWeave, despite the company’s shares having surged 233% since its IPO. These developments indicate varied analyst perspectives on CoreWeave’s performance and future prospects.

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