Should You Stay Invested in or Sell CoreWeave Stock Post Q1 Earnings?

From Nasdaq: 2025-05-19 08:12:00

CoreWeave, Inc. reported first-quarter 2025 results with revenues of $981.6 million, beating estimates by 15.2% and increasing 420% year over year. Shares of CRWV surged over 19% after the earnings announcement, closing at $80.30. The company’s Q1 earnings showed a wider loss per share but an increase in revenue backlog by 63%.

CRWV’s strategic partnerships with OpenAI and NVIDIA, along with its expanding data center network and strong revenue backlog of $259 billion, position it well for growth. The company expects revenues between $4.9 billion and $5.1 billion for 2025. Despite challenges like high capex and customer concentration, CRWV’s AI-focused cloud infrastructure offers a competitive edge.

Investors may consider staying invested in CRWV for its revenue growth prospects and partnerships. However, challenges like high capex and competition from industry giants like Amazon and Microsoft exist. With a Zacks Rank #3 (Hold), CRWV’s growth prospects remain intact, but investors may want to wait for a better entry point.

CRWV shares have outperformed peers and the market, gaining 126.7% in the past month. The company’s revenue growth potential amidst rising AI demand makes it an attractive investment option. For more insights and stock recommendations, consult Zacks Investment Research for the latest updates on CRWV and other top-performing stocks.



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