CoreWeave (CRWV) Stock Drops 60% Post-IPO Despite 204% Revenue Growth in AI Cloud Services

Written by Emily J. Thompson, Senior Investment Analyst

CRWV+12.22%

Source: Fool

Updated: 1h ago

0mins

Source: Fool

Significant Revenue Growth: CoreWeave generated nearly $3.6 billion in revenue in the first nine months of 2025, reflecting a remarkable 204% year-over-year increase, indicating strong demand for its AI cloud services despite financial challenges.
Soaring Operating Costs: Despite substantial revenue growth, CoreWeave's operating expenses surged by 267% year-over-year, resulting in a loss of $715 million in the first nine months of 2025, highlighting the financial pressures faced during expansion.
Increased Debt Burden: The company issued $2.25 billion in convertible notes in 2025, with a low interest rate of 1.75%, yet its total debt has risen to $14 billion, primarily at rates between 9% and 15%, raising financial risk concerns.
Future Growth Potential: Analysts forecast a 134% revenue growth for CoreWeave in 2026, which could help the company approach profitability and potentially lower financing costs for existing debt, although current negative cash flow and high debt levels remain critical issues.

CRWV

$89.93+Infinity%1D

Analyst Views on CRWV

Wall Street analysts forecast CRWV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWV is 149.70 USD with a low forecast of 36.00 USD and a high forecast of 430.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

25 Analyst Rating

13 Buy

11 Hold

1 Sell

Moderate Buy

Current: 80.140

Low

36.00

Averages

149.70

High

430.00

Current: 80.140

Low

36.00

Averages

149.70

High

430.00

Truist

Hold

initiated

$84

2026-01-06

Reason

Truist

Price Target

$84

2026-01-06

initiated

Hold

Reason

Truist initiated coverage of CoreWeave (CRWV) with a Hold rating and $84 price target. CoreWeave holds a leadership position in providing purpose-built AI cloud infrastructure and has become a trusted provider to leading AI labs and hyperscalers, the analyst tells investors in a research note. The Nvidia (NVDA) partnership is vital as it ensures CoreWeave access to GPUs, providing a long-term revenue backstop, Truist says.

DA Davidson

Gil Luria

Underperform

Neutral

upgrade

$36 -> $68

2026-01-05

Reason

DA Davidson

Gil Luria

Price Target

$36 -> $68

2026-01-05

upgrade

Underperform

Neutral

Reason

As previously reported, DA Davidson analyst Gil Luria upgraded CoreWeave to Neutral from Underperform with a price target of $68, up from $36. The firm was "reluctant," but upgrades shares as it believes that a successful $100B fundraise by OpenAI is "not a forgone conclusion," but serves as a potential positive catalyst for CoreWeave. If completed, such a raise would allow OpenAI to live up to all of its commitments in 2026, including to CoreWeave, and while the firm believes that "the equity in shares of CRWV may ultimately lose all its value since the entire value of the enterprise is owned by debt holders," it thinks a fundraise from OpenAI "would kick the can down the road for the inevitable reckoning."

Jefferies

Brent Thill

Buy

downgrade

$155 -> $120

2026-01-05

Reason

Jefferies

Brent Thill

Price Target

$155 -> $120

2026-01-05

downgrade

Buy

Reason

Jefferies analyst Brent Thill lowered the firm's price target on CoreWeave to $120 from $155 and keeps a Buy rating on the shares. The firm believes 2026 will be "another year of gradual AI monetization," but thinks more meaningful growth contribution and acceleration are needed to ease AI disintermediation fears, requiring more selectivity, the analyst tells investors in an outlook note on the software group. "While we remain confident that value will ultimately accrue to the software layer, investors may need to stay patient" with sector valuation back at historical average, the analyst added.

Freedom Capital

Paul Meeks

Buy

initiated

$100

2025-12-04

Reason

Freedom Capital

Paul Meeks

Price Target

$100

2025-12-04

initiated

Buy

Reason

Freedom Capital analyst Paul Meeks initiated coverage of CoreWeave with a Buy rating and $100 price target. The firm says the stock's recent selloff "significantly overstates" the risk that CoreWeave will not not deliver its $56B multi-year revenue backlog. The company's payments from hyperscalers which are supporting its capital expenditures "are secure for several years," the analyst tells investors in a research note.

About CRWV

CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.