CoreWeave stock has bounced back substantially in the past few days, moving the July 29 low of $60 to the current $90.6. It has jumped by over 50% as investors rotate back to companies in the artificial intelligence industry. This rally will be put to the test as it publishes its financial results this week.
CoreWeave stock in focus ahead of earnings
CoreWeave, a former Bitcoin miner that counts Nvidia as its biggest shareholder, has been under pressure since June last year when it peaked at $187.
It dropped to a low of $60 in July as concerns about the AI industry and its capital expenditure plans jumped.
Recently, however, the stock has jumped by 50% to $90.6 and is sitting at its highest level since July 9. This rally has coincided with the ongoing rebound of other top AI companies like Nvidia and AMD.
CoreWeave stock will be in focus as it releases its financial results on Tuesday. These numbers are expected to show that its revenue jumped in the second quarter, with the backlog crossing the $100 billion milestone.
The most recent results showed that it is one of the fastest-growing companies in the United States as its revenue soared from $982 million to $2.07 billion. Also, its adjusted EBITDA jumped from $602 million in Q1’25 to $1.1 billion.
This growth likely continued in the second quarter of the year as the company signed in more clients. The average estimate among analysts is that its revenue soared by 110% in the quarter to $2.56 billion.
This is a strong revenue growth metric considering that the company made $5.13 billion in the whole of last year. The third quarter revenue is expected to come in at $3.42 billion, up by 150% YoY. At the same time, the company’s loss per share is expected to jump from $0.6 in Q2’25 to $1.45.
Cost of AI build-up is rising
While CoreWeave’s revenues are soaring, investors are concerned about the cost of the data center construction. The prices of key products like servers, GPUs, and memory have all jumped substantially in the past few months.
In its last earnings report, CoreWeave said that its capital expenditures will be between $30 billion and $35 billion. As a result, it will need more cash, leading to higher debt, and potentially dilution.
The company is also contending with a more competitive situation as more firms join. For example, SpaceX has already received large orders from companies like Anthropic, Google, and Reflection AI. Meta Platforms is also considering expanding to the data center infrastructure industry. Most Bitcoin mining companies have also invested huge sums of money in the sector.
Analysts have a largely bullish outlook for the company. For example, Citigroup has a price target of $142, while Jefferies see it rising to $150. Mizuho, Macquarie, and Cantor Fitzgerald have targets of $100, $130, and $167, respectively.
CRWV stock price technical analysis
CoreWeave stock chart | Source: TradingView
Technicals suggest that the CRWV stock price may rebound after earnings. For one, it created a large triple-bottom pattern at $66.26. This is a common bullish reversal sign in technical analysis.
The stock has also formed an inverted head-and-shoulders pattern and moved slightly above the 50-day Exponential Moving Average (EMA). It also jumped above the Strong, Pivot, Reverse level of the Murrey Math Lines tool.
Therefore, the outlook for the stock is bullish, with the next key target to watch being at $100, which coincides with the Major S/R pivot point. A drop below the strong, pivot, reverse level of the Murrey Math Lines at $75 is also possible after earnings.
