Finbold·2025-08-13 07:56Core View - CoreWeave's share price experienced a significant drop in after-hours trading despite reporting strong revenue growth for Q2 2025, closing at $133 after a 10% decline [1][3] - The company has seen a remarkable increase of over 270% in its stock price since its IPO in April 2025 [1] Financial Performance - CoreWeave reported a revenue increase of 206% year-over-year, reaching $1.21 billion, surpassing analyst expectations of $1.08 billion [3][4] - The company posted a net loss of $290.5 million, which was higher than the anticipated $199 million, with an adjusted loss of $131 million and a gross margin of -11% [4] - In the previous year, the adjusted loss was only $5 million with a -1% margin, indicating a significant deterioration in profitability [4] Business Expansion - CoreWeave is aggressively expanding, having completed a $1.4 billion acquisition of AI monitoring startup Weights & Biases and is pursuing a $9 billion acquisition of Core Scientific, expected to finalize later this year [5] Market Outlook - JPMorgan analyst Mark Murphy has raised his price target for CoreWeave from $66 to $135, maintaining an 'Overweight' rating due to the company's substantial growth potential in the AI sector [6] - The company has secured a five-year, $11.9 billion deal with OpenAI, further enhancing its market position [6] Challenges - Despite the positive outlook, there are concerns regarding high debt levels, volatile bookings, and the risk of shrinking margins as competitors gain access to similar Nvidia GPUs, which have been a key competitive advantage for CoreWeave [7]