D.A. Davidson Analyst Maintains Sell Rating on CoreWeave Amid Profitability Concerns
CoreWeave's third-quarter revenue surged 134% year-over-year, yet shares plummeted 15% as full-year guidance fell short of Wall Street expectations. D.A. Davidson's top analyst Gil Luria reiterated a Sell rating, pointing to deteriorating profitability and a sequential slowdown in growth.
The company's revenue backlog swelled to $55.6 billion, fueled by partnerships with Meta Platforms and OpenAI. Notably absent from the backlog was a $6.3 billion agreement with Nvidia, raising further questions about CoreWeave's trajectory.
Investor disappointment centers on the 2025 revenue forecast of $5.05-$5.15 billion, below consensus estimates of $5.29 billion. The AI cloud provider's decelerating growth—from 207% in Q2 to 134% in Q3—signals potential headwinds in the competitive infrastructure sector.
