CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks Jim Cramer recently put under a microscope. Cramer noted that the company did not deliver a good quarter, as he commented: “… the quarter we just got from CoreWeave, that’s a key data center operator that had to cut its full-year outlook today because it has contracted with an outfit called Core Scientific that failed to deliver its part of several data centers on time. It’s a huge piece of business that didn’t get done. The missed quarter shocked people, ...

Group 1 - The article discusses a significant reversal in speculative stocks, particularly affecting investors of CoreWeave, Inc. (CRWV) [1] - JR Research is highlighted as an opportunistic investor recognized for identifying attractive risk/reward opportunities, particularly in technology and growth sectors [1] - The investment strategy focuses on growth opportunities with strong fundamentals and potential for recovery, avoiding overhyped stocks [1] Group 2 - JR Research runs the Ultimate Growth Investing group, which specializes in identifying high-potential opportunities across various sectors with a 18 to 24 month outlook [1] - The group targets growth stocks with robust fundamentals, buying momentum, and turnaround plays at attractive valuations [1]

CoreWeave ( CRWV )’s shares dropped 16% on Tuesday after the Cloud platforms pulled its revenue guidance for FY 2025 due to Data Center build-out delays which is pushing revenue into FY 2026. Although the Data CenterAnalyst’s Disclosure:I/we have a beneficial long position in the shares of CRWV, NBIS, META, NVDA, IREN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Al ...

Core Viewpoint - CoreWeave, Inc.'s Q3 2025 results raise concerns about the sustainability of its growth model, indicating that the company's hypergrowth may not be sustainable [1] Financial Performance - The latest results suggest that CoreWeave's growth trajectory is under scrutiny, with analysts questioning the long-term viability of its business model [1]

Core Performance - CoreWeave, Inc. reported record revenues of $1.36 billion in Q3 2025, reflecting a 134% year-over-year increase, and a revenue backlog of $55.6 billion, nearly doubling within a single quarter [1][8] - The company is solidifying its position as a leading cloud provider for AI, focusing on innovation to support the next generation of AI [1] Customer Contracts and Partnerships - CoreWeave secured a multi-year deal with Meta valued at approximately $14.2 billion and expanded its partnership with OpenAI to a total commitment of about $22.4 billion [2] - The company has deepened its relationships with various clients, including Inference.net, Mizuho Bank, NASA JPL, and Poolside, marking its sixth contract with a leading hyperscaler [2] Infrastructure Expansion - The company is rapidly expanding its data centers, adding eight new U.S. data centers and advancing its European expansion, including a significant site in Scotland [3] - CoreWeave is scaling its AI infrastructure, adding around 120 megawatts (MW) of active power to reach approximately 590 MW in total, with contracted power expanding to 2.9 gigawatts in Q3 [3] Financial Outlook and Challenges - Despite strong demand, CoreWeave faces supply chain pressures, leading to a revised full-year 2025 revenue forecast of $5.05 billion to $5.15 billion, down from earlier projections [4] - The company anticipates adjusted operating income between $690 million and $720 million, also lower than previous expectations [4] - Heavy capital expenditures and rising interest costs are additional concerns, with expected interest expenses for 2025 between $1.21 billion and $1.25 billion [5] Competitive Landscape - CoreWeave is facing intense competition in the AI cloud infrastructure space from companies like Microsoft and Nebius Group [5] - Microsoft plans to increase its AI capacity by over 80% in 2025 and is building the world's most powerful AI data center, while Nebius has secured a $3 billion agreement with Meta [6][7] Stock Performance and Valuation - CoreWeave's shares have gained 113.6% over the past year, significantly outperforming the Internet Software industry's growth of 9.2% [10] - The company's shares are trading at a Price/Book ratio of 15.71X, considerably higher than the industry average of 6X [12]

Core Sentiment Shift - Shares of CoreWeave (NASDAQ: CRWV) have experienced a significant reversal in sentiment, moving from a deeply bearish outlook to a neutral-to-bullish stance within a 24-hour period [1] Social Media Influence - The sentiment shift has been notably observed on platforms such as Reddit and X, indicating a change in investor perception and potential market dynamics surrounding the company [1]

Core Viewpoint - Oracle is viewed as a cautionary tale in the AI sector, highlighting irresponsible investment behaviors compared to more stable competitors like Microsoft, Amazon, and Google [2][3][4]. Investment Behavior - Oracle's approach to AI investment is characterized as irresponsible, particularly in borrowing to support capacity for startups, which contrasts with the healthy investment practices of its competitors [4][5]. - The company initially reported a $300 billion backlog, which was later revealed to be primarily from OpenAI, raising concerns about the validity of this demand [4][5]. Financial Performance - Oracle's gross margins in the AI business are significantly lower (30-40%) compared to its core business margins (80%), indicating potential issues with profitability in this segment [5][6]. - The stock price of Oracle has reverted to previous levels, reflecting a loss of optimism and confidence in its growth prospects [6]. Market Position - Despite challenges, Oracle's core business is growing at 5% and has a cloud segment with promising customers, suggesting some stability and potential for future growth [8][11]. - The company is involved with notable clients, including potential ownership stakes in TikTok USA, which could enhance its market position [8]. Valuation Perspective - Current valuation metrics suggest that Oracle's stock is not cheap at 32 times earnings, with a more appropriate valuation being around 25 times earnings, equating to a target price of $200 [10]. - The cloud business, while not as strong as the core business, still holds value, particularly in segments serving large customers like Zoom and ByteDance [11].

Of course, there's the energy question. Uh, can the energy supply required meet the demand. Our next guest is out with a new report projecting up to a 20% shortage of US power for data centers through 2028.Joining us this morning, Morgan Stanley's global head of thematic research, Steven Bird, is with us. Stephen, welcome back. It's good to see you again.>> Thanks so much, Carl. Thanks, Sarah. >> So, is this going to get worse before it gets better.My concern is you can run into so many different snags when ...

J.P. Morgan analysts reiterated their view that CoreWeave's long-term potential remains unchanged, citing a backlog that nearly doubled sequentially to $56 billion, as well as notable contract expansions. CoreWeave also added notable customers, including CrowdStrike (CRWD), Poolside, Rakuten (RKUNY), and Jasper, while launching CoreWeave Federal to serve government agencies like NASA.The situation forced CoreWeave to reduce its year-end active power target from above 900 megawatts to over 850 megawatts whil ...

Core Insights - CoreWeave, Inc. (CRWV) experienced a significant decline in share price following its Q3 2025 results, with a drop of 16.3% in the last session and a total decline of 37.6% over the past month, underperforming the Zacks Internet-Software Market's loss of 6.8% [1][2] Financial Performance - CRWV reported record revenues of $1.4 billion in Q3, exceeding the Zacks Consensus Estimate by 6.8% and reflecting a year-over-year increase of 134% driven by high demand for AI compute capacity [3][7] - The revenue backlog reached $55.6 billion, nearly doubling quarter over quarter, indicating strong future revenue visibility [3][7] - Total operating expenses rose to $1.3 billion from $466.8 million in the previous year, with operating income decreasing to $51.9 million from $117.1 million year-over-year [4] Guidance and Capital Expenditure - The company lowered its revenue guidance for full-year 2025 to between $5.05 billion and $5.15 billion, down from the previous estimate of $5.15 billion to $5.35 billion [8] - Adjusted operating income is now forecasted to be between $690 million and $720 million, reduced from an earlier expectation of $800 million to $830 million [9] - Capital expenditures (capex) are estimated to be between $12 billion and $14 billion, significantly lower than the previous projection of $20 billion to $23 billion [10] Competitive Landscape and Challenges - CoreWeave faces intense competition in the AI cloud infrastructure market from major players like Amazon and Microsoft, as well as emerging companies like Nebius [5][10] - The company has raised $14 billion in debt and equity year-to-date, with interest expenses increasing to $311 million compared to $104 million a year ago [11] Growth Potential and Strategic Initiatives - CoreWeave's GPU-based cloud services are positioned well within the AI infrastructure boom, supported by a substantial backlog and diversified customer base [12][17] - The company is expanding its infrastructure with eight new data centers in the U.S. and further expansions planned in Europe [13][14] - Strategic partnerships with NVIDIA, OpenAI, and Meta Platforms enhance its market position and validate its infrastructure capabilities [16][17] Valuation and Investment Outlook - Despite concerns over high capital expenditures and rising interest costs, CoreWeave's long-term growth potential remains strong, supported by its solid backlog and strategic partnerships [22][23] - The current dip in CRWV stock is viewed as an attractive buying opportunity, with the company holding a Zacks Rank 2 (Buy) [23]