Yahoo Finance·2026-01-15 21:25Core Insights - CoreWeave (NASDAQ: CRWV) has seen its stock price more than double since its IPO in March 2025, becoming a prominent player in the tech sector focused on AI data centers [1] - The company specializes in building data centers for artificial intelligence and sells computing power to AI firms, with projections indicating that total spending on AI data centers could reach trillions by 2030 [1] Financial Performance - CoreWeave's trailing-12-month revenue stands at $4.3 billion, with analysts predicting it will surge to $12 billion this year and $19.2 billion next year [4] - Despite impressive growth, the company has incurred significant financial losses, burning $8 billion in free cash flow over the past year [5] Debt and Investment Challenges - Since July 2024, CoreWeave has accumulated over $18 billion in debt, and its share count has increased by more than 7.3% since the IPO [6] - The company's ongoing need to purchase GPU chips and build data centers to support growth is leading to increased financial strain, making it less likely to perform well for investors in the near term [6] Competitive Landscape - While CoreWeave's growth is notable, its financial losses may hinder its long-term success, prompting investors to consider more stable AI stocks with established profit-generating businesses [7] - Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is highlighted as a strong competitor, with a robust financial foundation and significant returns for shareholders, generating $385 billion in annual revenue and $73 billion in free cash flow [8]