CoreWeave’s Stock Rally Stumbles Amid Revised Revenue Outlook
CoreWeave (CRWV), a key player in AI cloud infrastructure, saw its stock plunge nearly 30% over five trading sessions after trimming its 2025 revenue forecast. The company now expects $5.1 billion, down from $5.25 billion, citing data center delays and compute supply bottlenecks.
Despite the setback, shares remain up 108% year-to-date, buoyed by soaring demand for AI computing and lucrative long-term contracts with tech giants. Analysts remain divided—bullish on the firm’s $55.6 billion backlog but wary of near-term headwinds.
Compass Point’s Michael Donovan initiated coverage with a Buy rating and $150 target, emphasizing CoreWeave’s locked-in demand. 'The backlog, up 85% quarterly, includes $22.4 billion in multi-year deals,' he noted. The market has largely priced in the guidance cut, turning focus to execution risks and AI’s insatiable infrastructure needs.
