Shares of CoreWeave (CRWV) fell in after-hours trading after the AI data center company reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at -$0.60, which missed analysts’ consensus estimate of -$0.23 per share. Sales increased by 206.7% year-over-year, with revenue hitting $1.21 billion. This beat analysts’ expectations of $1.08 billion.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Interestingly, CoreWeave secured some major deals this quarter, including a $4 billion expansion with OpenAI that added to a prior $11.9 billion agreement. It also rapidly scaled its AI infrastructure to end with about 470 MW of active power and boosted contracted capacity to 2.2 GW. In addition, it became the first to deploy Nvidia (NVDA) GB200 NVL72 systems at scale for clients like Cohere (COHR) and IBM (IBM).
Separately, CoreWeave completed its acquisition of Weights & Biases to add new tools like Mission Control for real-time system health, W&B Inference for easy access to open-source AI models, and W&B Weave for live performance monitoring. Moreover, it hosted its largest developer event and announced plans for a 250 MW AI data center in Kenilworth, NJ, set to open in 2026. To fund growth, the company raised $2 billion in notes due in 2030. Although the firm didn’t provide guidance in its earnings release, Corweave will talk about its business outlook during its earnings call at 5:00 P.M. ET today.
Is CRWV a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CRWV stock based on six Buys, 14 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $108.17 per share implies 26.1% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
