Introduction
CoreWeave (CRWV), a cloud computing company specializing in artificial intelligence (AI), is set to release its third-quarter earnings report on November 10, following the market's closure. Having gone public earlier in the year through one of the most notable IPOs of 2025, the company's stock has seen a remarkable increase of approximately 167% from its initial offering price of $40, despite experiencing a recent decline. Analysts predict that CoreWeave will report a loss of $0.40 per share alongside revenues of around $1.29 billion for the quarter.
Revenue Growth and Analyst Concerns
CoreWeave has demonstrated significant revenue growth, with figures jumping from $395 million in Q2 2024 to $1.2 billion in Q2 2025. This upward trend indicates a strong demand for its services. Nevertheless, the company is currently operating at a loss, and analysts express caution regarding its financial health. Concerns are raised due to the stock's high valuation, substantial debt levels, and reliance on major clients such as Microsoft (MSFT). These factors may pose risks to the company's long-term stability, despite its impressive revenue backlog of $30.1 billion as of the end of the second quarter.
Recent Developments
In a significant move ahead of its Q3 report, CoreWeave announced a partnership with CrowdStrike (CRWD) on November 5, aimed at developing a secure AI cloud. Under this collaboration, CoreWeave will supply the necessary computing power, while CrowdStrike will enhance security using its Falcon platform, intending to improve the speed and safety of AI systems. Additionally, on October 30, Core Scientific (CORZ) shareholders rejected CoreWeave's $9 billion all-stock acquisition offer, which was initially proposed in July. The deal faced backlash from investors who believed it undervalued Core Scientific, and CoreWeave chose not to increase its bid, asserting that it fairly reflected the company's market value.
Market Reactions and Analysts' Perspectives
Following the failed acquisition attempt, Mizuho Securities analyst Gregg Moskowitz commented that the rejection is unlikely to have a significant long-term impact on CoreWeave. He maintained a “Hold” rating on the stock with a price target of $150, suggesting a potential upside of approximately 14.5%. After the announcement, CRWV's stock price fell by 6.3%. Although the merger's collapse eliminated an opportunity for the company to reduce funding costs and secure infrastructure financing, Moskowitz emphasized that CoreWeave remains committed to its growth strategy. He anticipates that the upcoming earnings report will provide more insights into the company's financing and power strategies.
Expectations from Options Traders
As the earnings report approaches, options traders are forecasting a notable price movement for CoreWeave stock. Utilizing TipRanks’ Options tool, it is indicated that traders expect a potential price shift of approximately 16.17% in either direction following the earnings announcement. This expectation reflects the market's uncertainty and anticipation regarding the company's financial performance.
Conclusion
In summary, CoreWeave is positioned at a crucial juncture as it prepares to disclose its third-quarter earnings. While the company has shown impressive revenue growth and secured a substantial backlog, concerns regarding its valuation, debt, and client dependency remain prevalent. The recent partnership with CrowdStrike and the failed acquisition attempt add layers of complexity to its narrative. Overall, the consensus among analysts leans towards a "Hold" rating, with potential for upside, underscoring the mixed sentiment surrounding CoreWeave's future in the competitive AI cloud computing landscape.