Why Shares of CoreWeave Are Plunging This Week

Core Viewpoints - CoreWeave reported strong Q2 2025 results, but investor sentiment remains negative, leading to a significant drop in stock price [1][2] - Despite beating revenue estimates and showing year-over-year growth in adjusted EBITDA, concerns about profitability overshadowed positive results [4] Financial Performance - In Q2 2025, CoreWeave achieved an adjusted operating income margin of 16.4%, down from 21.5% in the same period last year [5] - If the company meets its 2025 guidance, it anticipates an adjusted operating income of $815 million on revenue of $5.25 billion, resulting in a margin of 15.5% [5] Market Reaction - Since the end of last Friday's trading session, CoreWeave's shares have plummeted by 21.3% [2] - The volatility in CoreWeave's stock is attributed to its recent IPO and the typical fluctuations associated with growth stocks [6] Investor Sentiment - Concerns regarding profitability are valid, but it is suggested that long-term investors should not panic and sell their positions [7]