CoreWeave (NASDAQ:CRWV) Shares Gap Up on Strong Earnings

CoreWeave Inc. (NASDAQ:CRWV) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $90.32, but opened at $108.70. CoreWeave shares last traded at $106.9190, with a volume of 29,752,110 shares trading hands.

The company reported ($1.14) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.52) by $0.38. The firm had revenue of $2.58 billion during the quarter. CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The firm’s revenue for the quarter was up 112.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.27) EPS.

More CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Strong quarterly performance: CoreWeave reported second-quarter revenue of $2.58 billion, up 112.5% year over year and ahead of estimates. Its adjusted loss of approximately $1.03 per share also beat expectations, supporting the view that AI infrastructure demand is translating into rapidly growing sales. CoreWeave stock pops as revenue doubles
• Positive Sentiment: Backlog and customer demand surged: The company’s backlog reached roughly $104 billion, while business with customers including Anthropic and Meta highlighted continued demand for large-scale AI computing capacity. CoreWeave also cited stronger AI-compute pricing and raised its outlook. CoreWeave revenue high and backlog grows
• Positive Sentiment: Revenue guidance exceeded estimates: Third-quarter revenue guidance of $3.5 billion to $3.6 billion topped consensus near $3.4 billion. Analysts also raised targets, including Baird to $130, Cantor Fitzgerald to $176, and Rosenblatt Securities to $250; the firms maintained positive ratings. Baird raises CoreWeave price target
• Neutral Sentiment: Broader market conditions: Technology shares and stock futures were higher ahead of the July CPI report, which could influence sentiment toward high-beta growth stocks such as CoreWeave.
• Negative Sentiment: Capital intensity limits profitability: Despite a 59% adjusted EBITDA margin, adjusted operating margin was only about 5%. Depreciation and amortization reached $1.39 billion, while projected 2026 capital expenditures of $35 billion to $39 billion and a debt-to-equity ratio of 3.68 create execution, cash-flow and financing risks. CoreWeave capital intensity analysis
• Negative Sentiment: Insider selling: COO Sachin Jain sold 13,608 shares worth approximately $1.25 million to cover tax withholding tied to vested equity awards. The transaction appears routine, but it may add modest caution after the rally. CoreWeave insider transaction filing

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Wells Fargo & Company raised their target price on CoreWeave from $155.00 to $160.00 and gave the stock an “overweight” rating in a research note on Wednesday. Cantor Fitzgerald set a $178.00 price target on shares of CoreWeave and gave the stock an “overweight” rating in a report on Wednesday. Evercore reiterated an “outperform” rating and set a $150.00 price objective on shares of CoreWeave in a report on Wednesday, April 15th. Jefferies Financial Group downgraded CoreWeave from a “buy” rating to a “hold” rating in a research note on Wednesday, July 22nd. Finally, Wolfe Research reaffirmed an “outperform” rating on shares of CoreWeave in a research note on Monday, July 6th. Twenty-three research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $138.67.

Insider Activity

In related news, insider Brian M. Venturo sold 375,000 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $101.24, for a total value of $37,965,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael N. Intrator sold 278,560 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $97.43, for a total transaction of $27,140,100.80. Following the sale, the chief executive officer owned 3,138,612 shares of the company’s stock, valued at approximately $305,794,967.16. The trade was a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 8,972,789 shares of company stock worth $889,538,607 in the last three months. Corporate insiders own 24.20% of the company’s stock.

Institutional Trading of CoreWeave

Several large investors have recently modified their holdings of the business. Sivia Capital Partners LLC bought a new position in CoreWeave in the 2nd quarter valued at approximately $39,824,000. Quantbot Technologies LP bought a new stake in shares of CoreWeave in the second quarter worth $311,000. Invesco Ltd. bought a new position in CoreWeave in the second quarter valued at about $882,000. First Trust Advisors LP bought a new stake in shares of CoreWeave during the 2nd quarter valued at about $20,260,000. Finally, Baird Financial Group Inc. purchased a new stake in shares of CoreWeave during the 2nd quarter valued at about $455,000.

CoreWeave Stock Up 21.3%

The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 3.68. The stock has a market cap of $49.05 billion, a P/E ratio of -35.27 and a beta of 7.44. The company’s 50 day moving average price is $90.50 and its two-hundred day moving average price is $94.73.

About CoreWeave

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and high throughput.

CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use.