D.A. Davidson analyst Gil Luria reiterated his “Sell” rating on CoreWeave (CRWV) after the company reported mixed results for the second quarter of fiscal 2025. In Q2, CoreWeave’s loss per share came in wider-than-expected at $0.60. However, sales jumped 206.7% year-over-year to $1.21 billion, easily beating analysts’ expectations. Luria believes CoreWeave’s business model is “not worth scaling,” citing issues such as deteriorating profitability and rising borrowing costs.
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At the same time, Mizuho Securities analyst Gregg Moskowitz reiterated his “Hold” rating on CRWV, setting a price target of $150, which implies that shares are almost fully valued at current levels.
Additionally, Citizens JMP analyst Gregory Miller maintained his Hold rating on CRWV stock, expressing concerns over its GPU-as-a-Service business model.
Here’s Why Analysts Are Disappointed with CoreWeave
D.A. Davidson’s Luria highlighted that CoreWeave incurred capital expenditures of $2.9 billion in Q2 and guided for capex between $2.9 billion and $3.4 billion for Q3. Meanwhile, the company maintained its full-year capex guidance of $20 billion to $23 billion, with the majority expected in Q4. Accordingly, Luria expects CoreWeave to take on roughly $10 billion in additional debt during the second half of this year to support its data center expansion plans, which would require significant capital raises in the short term.
Mizuho’s Moskowitz maintains a balanced view of CoreWeave’s stock amid the competitive artificial intelligence (AI) infrastructure landscape. CoreWeave is one of the largest providers of cloud infrastructure for data centers. He noted that the company’s shares have surged nearly 300% since its stock market debut on March 28, 2025. As a result, Moskowitz believes the stock’s risk-reward profile is currently balanced.
Furthermore, JMP’s Miller pointed to declining average selling prices and rising customer churn as key reasons for his cautious stance on CoreWeave. He prefers to remain on the sidelines until investors gain a clearer understanding of the company’s key performance indicators (KPIs).
Is CRWV Stock a Buy, Hold, or Sell?
CoreWeave’s offerings remain in the spotlight due to the rapidly growing demand for data centers that run generative AI models. The company is also set to acquire its data center infrastructure partner, Core Scientific (CORZ), in a $9 billion deal.
On TipRanks, CRWV stock has a Hold consensus rating based on six Buys, 14 Holds, and two Sell ratings. The average CoreWeave price target of $112 implies 24.7% downside potential from current levels.
