Coreweave Inc (CRWV) Stock Forecast & Price Target

CoreWeave Inc. has demonstrated significant growth, with a revenue backlog increasing to $55.6 billion, bolstered by substantial contracts including a $14.2 billion deal with Meta and a $6.5 billion expansion with OpenAI. The company reported a 13% sequential revenue gain to $1.36 billion in 3Q25, alongside a remarkable 85% increase in revenue backlog compared to the previous quarter. Additionally, CoreWeave's strong demand for AI-related infrastructure and its strategic expansion in power capacity to 590MW further underline a positive outlook for its operational effectiveness and future revenue potential.

CoreWeave Inc. faces a negative outlook primarily due to a disappointing reduction in revenue guidance for FY25, now estimated at $5.06 billion, down from $5.15 billion, alongside significant downward revisions in profitability metrics, with gross, operating, and net margins deteriorating by approximately 250 basis points, 1,600 basis points, and 700 basis points year-over-year, respectively. The company has also revised its capital expenditures down to a range of $12 billion to $14 billion, marking a 40% reduction from prior guidance of $20 billion to $23 billion, which raises concerns about future growth prospects and cash flow stability. Furthermore, high upfront capital expenditures, potential customer concentration risks, and infrastructure headwinds related to power access and hardware obsolescence contribute to a fragile earnings stream, underscoring the overall precarious financial position of CoreWeave.