CoreWeave's Growth and Challenges: CoreWeave is experiencing a surge in demand for AI computing, with a record revenue of $1.365 billion and a backlog of $55.6 billion, but faces challenges in translating this demand into sustainable profits due to high capital expenditures and operational risks.
Financial Strain: The company reported a net loss of $110.1 million in the third quarter, largely due to rising interest expenses from $310.6 million in debt, raising concerns about its financial health and ability to manage growth effectively.
Market Valuation Concerns: Despite a recent stock price increase following a buy rating from Citigroup, CoreWeave's high price-to-sales ratio of nearly 10 and ongoing unprofitability suggest that investors should be cautious and consider waiting for a more favorable entry point.
Investment Recommendations: Analysts from The Motley Fool have identified 10 stocks they believe are better investment opportunities than CoreWeave, emphasizing the importance of balancing risks with potential rewards before making investment decisions.
CRWV
$83+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
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.
13 Buy
11 Hold
1 Sell
Moderate Buy
Current: 67.680
Low
36.00
Averages
149.70
High
430.00
Current: 67.680
Low
36.00
Averages
149.70
High
430.00
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.
Goldman Sachs
Kash Rangan
Neutral
downgrade
$120 -> $105
2025-11-17
Reason
Goldman Sachs
Kash Rangan
Price Target
$120 -> $105
2025-11-17
downgrade
Neutral
Reason
Goldman Sachs analyst Kash Rangan lowered the firm's price target on CoreWeave to $105 from $120 and keeps a Neutral rating on the shares. CoreWeave's Q3 results were strong on growth, margins, backlog, and lower-than-expected CapEx, but the stock fell sharply due to powered-shell delivery delays that trimmed the FY25 revenue outlook and raised execution concerns, the analyst tells investors in a research note. Even so, demand diversification, rising capacity, a surging backlog, improving financing conditions, and renewed/expanded contracts with major customers support a solid longer-term outlook despite near-term build-out risks, Goldman says.
Compass Point
NULL -> Buy
initiated
$150
2025-11-13
Reason
Compass Point
Price Target
$150
2025-11-13
initiated
NULL -> Buy
Reason
Compass Point initiated coverage of CoreWeave (CRWV) with a Buy rating and $150 price target. CoreWeave already serves Microsoft (MSFT) and has captured long-term demand, the analyst tells investors in a research note. The firms CoreWeave's "essentially locked-in" demand and multi-year revenue brings conviction that its growth is durable.
Loop Capital
Buy
downgrade
$165 -> $120
2025-11-12
Reason
Loop Capital
Price Target
$165 -> $120
2025-11-12
downgrade
Buy
Reason
Loop Capital lowered the firm's price target on CoreWeave to $120 from $165 and keeps a Buy rating on the shares. The firm is adjusting expectations to account for continued "deployment" lumpiness that may extend through 2026, the analyst tells investors in a research note. The main constraint remains powered shell availability, now viewed as an even greater bottleneck than power itself, limiting how quickly equipment can be deployed, though these challenges are logistical rather than reflective of weaker demand or technology fundamentals, the firm says.
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.
