Down 50% From Its All-Time High, Should You Buy CoreWeave Before 2025 Is Over?

Core Viewpoints - CoreWeave's stock has experienced significant volatility in 2025, increasing over 125% since its March IPO but down approximately 50% from its June peak of 360% [1][2] - The fair value of CoreWeave's stock is debated, hinging on investor sentiment regarding its future prospects as it could potentially grow into a major player in the industry [2] Company Operations - CoreWeave operates a cloud computing service focused on artificial intelligence, utilizing advanced GPUs from Nvidia and renting computing capacity to major clients like OpenAI, Microsoft, and Meta Platforms [4] - Despite having high-profile clients, CoreWeave is currently unprofitable, with Q3 capital expenditures reaching $1.9 billion against only $1.4 billion in revenue [5][6] Financial Performance - Over the past 12 months, CoreWeave has spent double on capital expenditures compared to its revenue, leading to significant cash burn [6][7] - The company has burned over $8 billion in free cash flow during the last year, with losses continuing to widen [7] Future Outlook - There is potential for improvement once capital expenditures are completed, allowing CoreWeave to operate its computing units without the need for additional funding [8] - CoreWeave has a substantial revenue backlog, indicating future revenue potential, but it remains far from breaking even and faces ongoing hardware replacement costs [9]